During the past 18 months, my company has worked with clients all across the country. In this time, something that has struck a chord in my office is the old saying “You don’t know what you don’t know.”
Before I go any further, let me clearly state that our clients are all very smart people who are good at business. Otherwise, quite frankly, they would not survive in today’s hypercompetitive marketplace. With that said, even the best businesses can do better—but they don’t know what they don’t know.
What Do You Know?
This is a potential threat across all areas of your business, but it can particularly hurt your processes, procedures and hardware and software portfolio. Often, the management team is not aware of the day-to-day processes that occur at the stores, in dispatching or in dealer sales. They see reports and results and they assume the flow of information is done in an effective manner and that all possible automation and cost-effective tools are being used. The front-line staff uses the methods and processes that they were told to use and do not put a lot of thought into why. We all assume that our vendors are keeping us up to date with the best and most effective solutions and explaining what we need and why.
We assume that we are making changes to process and procedure as warranted. But in the end, this is rarely the case. Everyone is usually too busy doing their day-to-day work, or are concerned that change or expenditures will be frowned upon.
In the end, we assume all too often. Imagine you lived in the old USSR (anyone who is too young to know what the USSR was, please Google it) and the state provided you with a 28-inch black-and-white tube TV.
Then you were able to get to the West, and you saw that everyone outside of the USSR had 60-inch color HD flat-screen TVs. Is this where your company stands on processes, procedures, software and/or hardware? Are you just assuming you have the best option available, that you’re not missing out on anything?
So how can you make sure that you are not falling behind? How can you ensure that you know what you need to know?
A number of resources exist to help you figure out exactly what you might not know:
- Study groups. Joining a study group will provide you with candid, detailed information from your peers. There are ownership, financial and operations groups along with many others, so not only you but also your entire organization can participate.
- Industry associations and events. The annual NACS Show, as well as many regional and state trade shows, have vendors (some of which you already deal with) who will be happy to show you why their services and/or equipment will make your business better. Remember, shows are not just for new retail items, but also for existing products and services you may not be aware of.
- Trade publications.CSP and other publications can give you unbiased information beyond your existing products and processes.
- Employee feedback. Too often we overlook the feedback and insights that our own staff can provide. These folks may have worked with other companies in (or outside) the industry and have some great ideas worth considering. Also, they deal with customers and vendors and can share what concerns or issues they are hearing.
- Vendor presentations. Schedule annual meetings with your vendors to ensure that you are on the latest version of software, to invest in newer equipment if and when it makes financial sense, and to get educated on everything that is available from them.
- Outside resources. Consultants offer a different set of eyes, knowledge and ability beyond what is within your organization or from a peer. A quality consulting firm has a staff of experts with true in-the-trenches experience. They have worked with clients of all sizes, with different business models, and in all areas of the country. They do not have an ax to grind as an employee may, nor do they have a financial gain if you purchase software or hardware. They can truly offer you impartial advice with the experience to make that advice valuable.
In the end, you need to learn what you don’t know. It’s the only way to ensure business controls, minimize labor expenses and maximize profitability.
Mark Lotstein is president of ROG Consulting LLC (rogconsulting.net). Reach him at mark@ retailgroup.com.
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