The Other Margin Problem
As our business has picked up in early 2010, I’ve noticed something frustrating: Response time from our vendors isn’t what it should be. Nor is our own responsiveness, I must confess. Finding a way to quickly and effectively meet customers’ needs, in fact, may be the challenge of the year facing most companies.
There are two resources in business, money and time. Over the past two years, most companies have seen their financial margins evaporate, requiring them to trim every ounce of fat they can out of their operations. That means their margins of time are gone as well. Like a shoulderless highway suddenly getting jammed with moving vehicles, there’s nowhere for oncoming traffic to go. It’s a problem that can only be solved by adding capacity, which isn’t always an easy option—assuming management even has the nerve to do so in a still-uncertain environment.
Last year I confessed that my second greatest fear (after “how are we going to cope with this mess?”) was “what if it all comes back at once?” While the economy isn’t exactly booming, it does appear to be showing signs of life. That’s a welcome sight, but it presents a whole new challenge to companies recovering from stalled growth.
Life is never dull.
I have had this conversation several times over the past few weeks. We are definitely busier, some good new business opportunities, current clients opening up the checkbook a bit. But like most, we are doing more with less. We have to find the balance between generating the new business, servicing the business we have and knowing when the right time is to bring in new team members. Given the alternative, this is a nice problem to have.
Comment by Abbie S. Fink — Saturday, March 27, 2010 @ 5:37 PM
I find your insight refreshing and thought provoking. Everyone from ‘joe citizen’ to CEO’s has been focusing on how to cope in the “here and now.” I represent the average consumer but happen to have the good fortune of working for a company who has been able to avoid lay-offs (lost margins of time) and, therefore, maintain precious and outstanding responsiveness. Money concerns were not absent but were compensated for by solid and conservative budget decisions…a seemingly lost art that our ‘old-fashioned’ parents approached their whole lives with (and which many articles and blogs have addressed)!
I’m impressed that you’re thinking ahead and concerned about how you’ll be caring for your clients. I am happy to work for a local commercial printer whose owners are of like mind. I’ve heard that it’s hard to find good quality and especially good customer service here in the Land of Enchantment and I’ve even been one who complains loudly about these at times- but I have to say, if you dig deep enough, you’ll find what you’re after. Yes, I’m bragging a little- but in these difficult economic times, it’s good to have something positive to say.
Life is always interesting.
Comment by Cynthia Hamilton — Thursday, April 22, 2010 @ 11:57 AM