Why Becoming a Success Story Is a Process
Business changes fast today and being nimble to change with it requires companies adopt process-based management that formalizes roles, responsibilities, procedures and cross-training.
Taking it beyond daily operations, can you speak to how this could affect larger issues like credit l
ines, bank loans, liabilities, succession planning and sale of the business?
Ron Davis: Bankers like stability. Employees don’t like sudden changes. Creditors want to know what’s going to happen if the unexpected actually happens. And, since I’m a business broker, I can tell you that business brokers feel comfortable working with a business where a plan has been established, a line of succession is in place, and there are no “bumps in the road” in getting a transaction done. There’s an old adage that goes something like this: “People who plan, don’t fail; people who fail, don’t plan.” Any supplier, creditor, lawyer, broker, accountant or heir is bound to feel more comfortable in establishing a relationship with a company that has instigated a PBM program. It provides the outside source with a roadmap to getting things done. It identifies key players, it sources where capital needs to be used and it doesn’t allow for any squandered time or effort on the part of employees, suppliers, or professional people.
The industry is going to be changing. In fact, it already has and many new changes are planned for the immediate future. The owner or general manager of a security business needs to be able to move quickly in order to meet expectations of creditors, stockholders, etc. If you are guiding a ship that has instigated PBM, it will be easier for you to hand over reins to a potential buyer. It will be easier for whoever takes over in the event of an unexpected absence from work, or even, death of an owner. The fact that you’ve even thought about the issues that these last few sentences raise, shows that you’re ready to put pen to paper and implement a program that will ensure the future success of your business.
If you have made it this far, I have a bonus for you. I mentioned at the outset that implementation tips are in my September column, however, Reitman presented an idea I couldn’t fit in there but I believe it’s a good one. So here is the parting shot . . .
Reitman: Many of my clients are extremely dependent on a single installer for all of their service. This is a huge concern as they do not have the ability to “groom” another employee to take over in case this key person quits, or is incapacitated. They have developed a relationship with another, trusted, company. The process typically begins with each company “covering” the other for vacations, etc. This makes it simpler to continue to operate in absence of the key employee. My larger clients typically groom frontline employees to be able to accept additional responsibilities. This can be done gently and in a manner that is not threatening to supervisory employees. We have many times provided back-office accounting, bookkeeping, and even scheduling and dispatch services to our clients who have become incapacitated.
So are you ready to make some important changes within your organization?
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About the Author
Scott Goldfine
Scott Goldfine is the marketing director for Elite Interactive Solutions. He is the former editor-in-chief and associate publisher of Security Sales & Integration. He can be reached at [email protected].
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