Texas has the decided benefit of being among the first to emerge from the worst economy in our lifetimes. But regardless of where your company's operations are located, now is the best time to clean up problems, inefficiencies and other surprises you may not know about so that when things get going really hot in the next couple of years you are better positioned to be that much more profitable.
For example, if you operate real estate assets which many companies do, when was the last time you had an outside auditor or even internal analyst review leases and other contracts to see if you are billing tenants correctly for common area maintenance fees (if applicable)? Some companies I have seen have literally had accounting clerk-level staff managing ongoing operations of said leases for the better part of 40 years. And with, for example, the 1986 tax law changes, which were now a lifetime ago, are you certain that you are operating at peak efficiency in this area?
We're not talking about strategic-level issues here. Do we outsource? Do we move manufacturing to Mexico? Do we lease or purchase? We're talking about ongoing operations. And it applies to large companies and small alike.
I have quite literally seen companies with billions of dollars in revenue that needed to completely blow up the real estate and accounting departments. Not necessarily outsource or offshore anything. Just simply change who is over which departments, run a full top-to-bottom audit of operations and go three levels deep into "what we've always done." Just because you've always done it does not mean it has ever been done right.
Then there are duplication of efforts issues that can be reduced by simply taking advantage of technology tools and even online accounting services or tools that were not available just a few years ago. It is almost unnecessary to have your accounting data stored in your own IT department. And the thought of having a Plant Accountant or Club Accountant at a golf course as well as a corporate accountant can be significantly reduced with tech tools the market is just itching to get real estate property managers to pay attention to. Save yourself money--request a proposal from a suitable software provider if you manage multiple locations with accounting staff both on-site and at the corporate office. Where a couple of tenths of a percentage mean the difference between a successful investment or disappointment, this can be a very beneficial tool to consider.
The strategy a company deploys can, of course, be the source of sustainability or bankruptcy. That's a topic for another day. We're just talking about ongoing operations. And with the market coming around--finally!--it is prime time for businesses to ensure they are prepared to duel with the big boys in the percentages and ratios.
Friday, January 25, 2013
Thursday, January 24, 2013
Create and Innovate to Perpetuate
A recent IBM survey of CEO's worldwide revealed that executives preferred one trait over any other: CREATIVITY!!
This should surprise nobody who has been around business terribly long. After all, the most successful corporations in the Fortune 500 and worldwide are driven by Intellectual Property developed by some of the greatest minds and most CREATIVE thinkers the world has ever known.
Granted, a few are driven by the greatest IP thieves in history, but we won't dwell on those details for purpose of this blog! Others have made low-budget movies and write gossip columns about these individuals.
Companies are simply driven by CREATIVITY and innovation. One statistic I remember from grad school, for example, detailed that 3M, Corp. (that's Minnesota Manufacturing and Mining) relies on something like 40% of its revenues from new products, new being defined as developed in the last 3 years. Other great examples abound in literally every sector.
And as the economy continues to rebound from the worst economic recession in (most of) our lives, a company's talent now takes on even more importance. For as the economy recovers, more and more people will be re-entering the workforce, further invigorating that economy with additional cash flowing around. And companies that are well-placed to be first or second in line for incremental consumer dollars will be the hot performers of the next several years.
And so the "stocking up" on additional talent NOW becomes paramount. Next year may be too late, or that talent too expensive to "rob" from your competition's cradle. Even if an "investment" in additional talent this year is necessary, though the new or expanding initiatives they will be a part of will not begin or grow until next year, it is best to bring that talent in-house now. If nothing else, they can rotate through various departments for a year, learning the complete business model so they are that much better capable of jumping into their eventual permanent role.
And obviously, companies with talented, innovative staff position themselves better than the competition. It doesn't matter if you consider companies that develop their own IP like google or companies that develop new products by employee-driven initiatives like 3M. Companies that develop such cash flows generate inflows that lend to their own perpetuation as well as engendering a culture of innovation that leads to the same in the future. Either way, creativity and innovation go hand-in-hand with perpetuation of a venture, big or small.
Now, that all sounds good, but here's where the self-promotion and blowing my own horn begins!
I find myself in a career search at an exciting time, one which actually has me considering different avenues in order to both grow my own skill set as well as more effectively (and lucratively!) benefit from my already existing talents and skills. I have Intellectual Property I am looking for capital to bring to market. I have expertise developed in public policy and political activism I am seeking a way to adequately bring to the fore to benefit others' situations and my pocket book. And I have professional expertise gained from both ongoing operations of area corporations as well as the unfortunate instance of having discovered boo-boo's in the books of one such company locally--boo-boo's of the 40-year historical variety! And I just can't see that being the only instance of such boo-boo's, given the sector they took place in.
So as year-end close wraps up and February 1st budgets begin to be spent just around the corner, start looking for those additions for the department and company that will put you in a better competitive position in your sector and industry for years to come. You can be sure I and thousands of other talented professionals are looking for the same for ourselves!
See you at the negotiating table!
This should surprise nobody who has been around business terribly long. After all, the most successful corporations in the Fortune 500 and worldwide are driven by Intellectual Property developed by some of the greatest minds and most CREATIVE thinkers the world has ever known.
Granted, a few are driven by the greatest IP thieves in history, but we won't dwell on those details for purpose of this blog! Others have made low-budget movies and write gossip columns about these individuals.
Companies are simply driven by CREATIVITY and innovation. One statistic I remember from grad school, for example, detailed that 3M, Corp. (that's Minnesota Manufacturing and Mining) relies on something like 40% of its revenues from new products, new being defined as developed in the last 3 years. Other great examples abound in literally every sector.
And as the economy continues to rebound from the worst economic recession in (most of) our lives, a company's talent now takes on even more importance. For as the economy recovers, more and more people will be re-entering the workforce, further invigorating that economy with additional cash flowing around. And companies that are well-placed to be first or second in line for incremental consumer dollars will be the hot performers of the next several years.
And so the "stocking up" on additional talent NOW becomes paramount. Next year may be too late, or that talent too expensive to "rob" from your competition's cradle. Even if an "investment" in additional talent this year is necessary, though the new or expanding initiatives they will be a part of will not begin or grow until next year, it is best to bring that talent in-house now. If nothing else, they can rotate through various departments for a year, learning the complete business model so they are that much better capable of jumping into their eventual permanent role.
And obviously, companies with talented, innovative staff position themselves better than the competition. It doesn't matter if you consider companies that develop their own IP like google or companies that develop new products by employee-driven initiatives like 3M. Companies that develop such cash flows generate inflows that lend to their own perpetuation as well as engendering a culture of innovation that leads to the same in the future. Either way, creativity and innovation go hand-in-hand with perpetuation of a venture, big or small.
Now, that all sounds good, but here's where the self-promotion and blowing my own horn begins!
I find myself in a career search at an exciting time, one which actually has me considering different avenues in order to both grow my own skill set as well as more effectively (and lucratively!) benefit from my already existing talents and skills. I have Intellectual Property I am looking for capital to bring to market. I have expertise developed in public policy and political activism I am seeking a way to adequately bring to the fore to benefit others' situations and my pocket book. And I have professional expertise gained from both ongoing operations of area corporations as well as the unfortunate instance of having discovered boo-boo's in the books of one such company locally--boo-boo's of the 40-year historical variety! And I just can't see that being the only instance of such boo-boo's, given the sector they took place in.
So as year-end close wraps up and February 1st budgets begin to be spent just around the corner, start looking for those additions for the department and company that will put you in a better competitive position in your sector and industry for years to come. You can be sure I and thousands of other talented professionals are looking for the same for ourselves!
See you at the negotiating table!
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