In the difficult world of business, it is clear that the main criterion for success or failure, at the end of the day, is profit. Quite simply, if the business generates profits, it means that it is doing well and if it creates losses, something is wrong.
We could discuss the above simplistic resolution for hours and days but our topic here is speed and how it affects various aspects of a business such as staff, profits, cash balances, customers, suppliers, and society.
In this day and age, speed is of the utmost importance. Businesses must constantly monitor their operations in order to coordinate their suppliers, production, staff, and other resources with the needs of customers and the market. The directors of each business have, on a daily basis, to make decisions with the data they have in order to satisfy to the greatest extent the shareholders and then their customers. And in order to solve your question, yes, I first put the needs of the shareholders (owners) of the businesses above the needs of the customers because that is the reality and there are too many times when the managers of a business succumb to the orders and suggestions of the shareholders at the expense of the customers even when this affects the customers, the profitability and long-term prospects of the company.
And to get straight to the point, what is the importance of speed combined with the most basic elements of a business?
Speed and sales:
The sooner a sale is finalized or can be closed, the better. Businesses need to do their utmost to facilitate the whole process. This requires constant monitoring of the process, and a constant need to reduce or even eliminate any bureaucracy. Businesses need to invest in the necessary procedures, technologies and practices to achieve the above with the fewest possible mistakes, losses and misunderstandings.
Speed and collections:
A quick sale without fast collection of the amount due is not a sale but credit. Priority should be given to those transactions that can be ‘closed’ quickly, and by closing, I mean that a sale, the delivery, and the collection should be made and the clients’ cheque is redeemed as quickly as possible. If you do not understand the importance of fast collection in business and the importance of cash flow, you should change your profession.
Speed and suppliers:
The correct choice of suppliers for your business is not a simple matter. The low price and/or quality provided or promised can be easily eliminated without the speed factor. You need to make the right choices and adjustments so that your suppliers are reliable, efficient, fast, and understand the needs of your business.
Speed and personnel:
Good employees are not the same as cheap employees. Good employees are efficient and therefore, your choices should be made with various criteria and not just the cost. An Effective employee is the one that needs the least possible supervision, can take initiative, can carry out its tasks, perform in many different departments, and of course is fast. The combination of speed and people is also important in terms of recruitment, evaluations and, of course, redundancies. The management of the company must know how to quickly choose what it needs and wants, evaluate quickly and if it does not live up to expectations, dismiss quickly.
Speed and customers:
Your customers may give you the feeling that they will never abandon you, but this belief of yours is wrong. They can (and will) abandon you if you are expensive, with mediocre quality, if you make mistakes, if you are slow. The options they have are numerous and they want the best possible product or service, at the best price and as fast as possible. Just as you will get upset when your suppliers are late or delayed, so will the customer get upset if you are late. Speed is also important in managing complaints and problems with your customers, which, in this fast era of the internet, social media and viral crises, requires additional attention and resources.
Speed and information:
Information is the currency of the future. Every single day management has at their disposal infinite information but limited time. Clever managers must evaluate the most relevant and correct information quickly otherwise this information becomes useless. You need fast and correct information about customers and their needs, about your competitors, production, people, the economy, and suppliers.
Speed is important but requires proper organizing so as not to backfire. A business with problems in terms of organization, personnel, procedures, and cash flow, can easily make a situation even worst if it tries to become quick simply for the sake of speed. It will make quick sales without quick collections (fund exhaustion), quick hiring without quick evaluations and layoffs (lazy people), and other potential side effects.
Too slow and your company will be left behind, too fast and your company may hit a wall. Find your perfect speed and pace, and step on it.
