Blog - page 48

What is benchmarking?

Darryl Bachmeier Mar 23, 2019 Strategy

It is difficult to understand how well you are performing unless you measure. Benchmarking allows you to determine how well you are performing by comparing your numbers to an average of others. It is used often in sales and operations. Benchmarking forces management to look beyond its own company and see what others are doing. Benchmarking is a proactive discovery method. You can compare your business externally with industry data or internally by comparing different teams, locations and departments. For industry data, it is best to compare against companies of the same type within the same industry. What may look good in one industry may be horrible in another. You look for what makes others perform better and model your company to theirs. You look at which processes work and which do not. You can even look at individual products. It starts with knowing what are key performance metrics, what...

What is appreciative inquiry?

Darryl Bachmeier Mar 23, 2019 Business

Appreciative Inquiry is all about making change. It looks to the positive strengths to make change happen. The leader has to motivate and empower followers in order for the change to occur. Often when businesses or individuals have a problem they seek to find what is going wrong and focus all their efforts at resolving the negative. Appreciative Inquiry turns this on its head by finding what is working and focusing all efforts on make the positive even better. There are four stages of appreciative inquiry Discovery, Dream, Design and Destiny. (Daft, R. L. 2014 P.467) Discovery looks for the strengths to find what is working. Dream this allows us to imagine a world in which the organization would be like if the best outcomes were a normal occurrence. Design asks us to create a plan so that we can build the dream. Destiny is all about implementing the plan....

What is a Statement of Work?

Darryl Bachmeier Mar 23, 2019 Project-Management

A statement of work defines the work to be done for a project. It defines all the requirements to client. It includes what must be delivered, how and when it must be completed by. These are all the projects deliverables. A statement of work is often used between a client and supplier. It should not be a template. It should be custom to the client. It is often a few pages in length and it must be well written, clear, and concise with little ambiguity. It is the first deliverable the client receives often soon after an initial meeting with the client. It confirms the understanding of what was discussed. It tells a story by giving the background of the situation and what needs to be done to fix it. It is a simple contract. It documents the terms that have been agreed in the initial meeting. Components of the...

What is the balanced scorecard?

Darryl Bachmeier Mar 22, 2019 Strategy

Balanced scorecard is a strategic management tool modeled after successful organizations. It was found that successful businesses have clear vision and do not only rely on the financial performance to determine their success. The balanced scorecard brings a balance between financial and non-financial measures. It is made up of four perspectives, financial, customers, internal processes and knowledge and growth. These four perspectives act as four legs to a table, all must be working together or the company will lose balance. Balanced scorecard allows management to make better business decisions. It makes it easier for the business to find areas it needs to make improvements. It gives a holistic view of the company. In developing strategic goals, balanced scorecard gets management to consider changes in one area may affect another. Each of the perspectives contain their own strategic objectives, targets and performance measures to determine success or failure. Performance measures should...

What is Supply and Demand?

Darryl Bachmeier Mar 22, 2019 Business

Supply and demand are what makes the market. Supply is how much the market is able to provide. Demand is how much a product or service is desired by buyers. Demand comes from how much quantity buyers are willing to buy at a certain price. Supply and Demand have key relationship. Demand relationship, price and quantity demanded relationship. Supply relationship, producers willing to supply at certain price. Price affects supply and demand. In this market economy, it rewards efficient use of resources. The law of demand All things being equal, the higher the price the lower the demand. Buyers are less likely to be able to afford the good so they will either save their money or spend their money on something else. There is a negative relationship between price and quantity demanded. The law of supply The higher the price the higher quantity is supplied. If producers can get...

How to Write SMART Business Goals

Darryl Bachmeier Mar 21, 2019 Strategy

All companies no matter the industry or size must create business goals to keep improving. Goals helps steer your business in the right direction. The best goals are SMART. They help you to achieve business success and identify what’s most important. SMART goals is an effective method used by successful business owners to consistently reach their business goals. Allows you to go from general ideas to creating an action plan to achieve real results. SMART Goals are + Specific (clear, distinct, unambiguous) + Measurable (quantitative, significant) + Achievable (attainable, feasible) + Relevant (important, related) + Time bound (time sensitive, ending) Smart business owners know the value of setting goals. Goals should be set for the short, intermediate and long term. Examples of SMART Goals + Specific: My retail store will start selling women’s shoes in style A and B. + Measurable: My retail store will sell 100 men’s shirts in...

How to Sell Your Small Business

Darryl Bachmeier Mar 21, 2019 Business

Selling your business can be difficult, a long process and be emotional. There are steps you can take to help smooth the process and there are certain external professionals you should consider consulting with. The first thing you probably want to know is how much money will I get. A quick way to ballpark the price of the business is three times cash flow after all expenses and taxes. If your business nets you $100,000 per year, a good starting price for the business is to sell for $300,000. Everything is relative however. First, consider your situation. Why are you selling? This is one of the first questions any potential buyer will ask. Retirement, overworked, relocating, family issues or just other interests are all valid. Your reason will affect the urgency in which the deal must complete. Selling when you do not have to sell is the best place to...

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