Out of the Crisis.Org

[Louis Altazan]

Efficiency and high sales are characteristic of a well run business. It is also possible for a very efficient business to fail. This is no surprise, the business could be quite efficient at rendering a service or product for which no market exist.

It is also quite easy for a business with a great many clients and high sales to fail. Many very busy enterprises have succumb to low/no profit. Being busy and efficient are characteristic of a well run business. Efficiency and sales are the outcome of proper management. They are not sufficient in themselves and do not necessarily indicate good management.

I believe good management is indicated by a product or service that helps people, enjoys a sustained market and produces a continuing ethical profit. Further, good management gets better over time, things are better today than last week.

Good management studies the market to determine it is adequate, before investing. This is continuous and the business plan is revised to follow the market, as it evolves. Good management also sets pricing at a point that ensures profit. Then it works to continually improve processes to provide value for the price.

Even a poorly run business may do well in a robust market. In the same market a well managed business will do considerably better. When the market slows, the poorly run business may be decimated. As John Kennedy once said, “The time to fix the roof is not when it is raining.”

With regard to business, the old adage, “If it’s not broken, don’t fix it,” is misplaced. Certainly nothing is gained from fixing what is not broken. Yet in business everything may be broken, in that it can always be done better, faster and less expensively.

The point is a well run business is in the best position to benefit tomorrow from constant improvement instituted today. Where would you like to be in ten years?

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Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA