As I often discuss the importance of accounting processes via my proven methodologies in Operational Accounting, I also thought of sharing valuable tips on the importance of organization and management.

Unfortunately, there will always be 3 business issues that plague us all as it relates to the day-to-day operations of our companies.   They are;

1)      Costing issues

2)      Sales & Marketing issues

3)      Organization Management issues

As the above points are all important, we cannot discount how important each one of these business issues is on their own.  In other words, we cannot rank these issues where they are important as a group and they are important alone.  Either way, we must address business issues and correct them.

So, how do we correct one as opposed to the other?  How do we correct one versus all of them at once?

These are very good questions, where the best approach is to correct them all at once.

I recently met a prospective client who let me know that the business was fine on the accounting side as well as the sales side.  This might be true to some degree but it never hurts to review what we believe is correct.

I find more often that business simply has issues no matter this size of the business, its location, or its balance sheet.  It never hurts to verify what we think we know.

Years ago, a group of consultants for The McKinsey Group, wrote a book about larger companies and their stodgy approach at dealing with issues.  The book also discussed those companies that did in fact succeed at re-inventing themselves.   

The book basically talked about the deconstruction of what we think our business really is.  In other words, as I mention to clients, we need to break the business apart and put it back together again, allowing us to re-build our business and understand what in fact we really are as a business.

One great example I can give is a manufacturing company in Houston, Texas, who was able to realize valuable efficiencies by allowing me to tear up the company and put it back together again.  Not only do we now have the ability to realize profitability via lower sales versus YAGO, but the business basically operates on auto-pilot.

In other words, everyone at this company actually does what the business needs done.  Rather, every employee and every process exists because we realized that the business needed particular functions to facilitate certain processes.

My point with all this is that this company now has an organization and structure based on what we now know we need not a perception of what we need.

That is the error in business…assuming we should operate this way rather than that way.  As business owners, we must find way to reconstruct our business so it tells us what we need to be doing other than what we want to be doing.

I once spoke with a business owner who was steadfast in believing his company produced a particular wooden part for staircases.  With the slowdown in the economy and significant losses in sales, this owner hard a hard time understanding this creative destructive methodology by failing to recognize that at the end of the day, he was simply a wood mill. 

Had he understood and respected the fact that he is simply a wood mill via this creative destructive mentality, he would have been able to manage the changing economy and would have been able to develop other opportunities…as a wood mill.