Blog entries posted in Management

When an Industry Declines

Steve Marr — Fri, 17 May 2013 07:37:22 +0100

Recently Walmart and Sears have closed their in store photography centers. In past generations, parents would dress up the family for the annual portrait. Today, few use a professional photographer.

When I was younger, I fancied myself a pretty good amateur photographer. I bought a Nikon 35 millimeter with several lenses. The camera cost around $5,000 in today’s dollars. I took a lot of shots using slide film and printed the best. In the past, taking pictures was costly and r...

Time is Money

Steve Marr — Fri, 10 May 2013 08:55:49 +0100

I receive requests asking for my free time regularly. If I said yes to each request, I would get little else done. I filter these requests for free time into three categories.

Some requests come from people with whom I have a relationship. For example, a good client asked me to help provide a perspective on a church building issue. I was happy to accommodate. We need to share ourselves in ways that strengthen our relationships. Another example was that a good friend ask...

Make Effective Trade-offs

Steve Marr — Mon, 15 Apr 2013 08:11:16 +0100

I have a problem. I want the best cost, the fastest speed, and the top quality all at once. Reality teaches me that I can’t always have all three. Often, I need to choose. Some people say that you can have any two, but not all three. However, I try to find a balance among all three. I try to find the best trade-off in any given circumstance.

When I approach a project, I determine my goal, what is needed, when it is needed, and how much it will co...

The Importance of Incremental Change

Steve Marr — Mon, 25 Mar 2013 10:11:54 +0100

Most change in business is incremental. That means that one small change or improvement builds upon another. Malcolm Gladwell in his book, Tipping Point, makes the case that small incremental changes can reach a point to where they tip to unleash a flood of success. The result isn’t so much about the last step, but about the culmination of many steps.

Think about the straw that broke the camel’s back. Each piece of straw had limited impact. E...

Interfering With Managers

Steve Marr — Thu, 17 Jan 2013 06:07:08 +0100

A common problem in businesses is when a business owner or senior manager consistently interacts, manages, or corrects staff who report directly to another person. While their intent to help is good, this typically creates confusion and rarely works. The staff person will become frustrated trying to please the direct supervisor and the other boss. This is especially true when work is assigned or changed. Then, both bosses become angry as each believes that their work should be done first.&nbs...

Changing Project Specifications

Steve Marr — Tue, 15 Jan 2013 06:00:05 +0100

Over the past several months I have received three questions about what to do when management changes specifications or time allocation for major projects.

Jesus said, "Suppose one of you wants to build a tower. Will he not first sit down and estimate the cost to see if he has enough money to complete it?” (Luke 14:28, NIV) Any project needs to allocate the correct amount of staff time, money, and other resources to get the job done.

A good project is clear on these i...

Audit Your Business

Steve Marr — Wed, 26 Dec 2012 06:12:48 +0100

I spoke with a business owner a while ago. The presenting issue was a negative slide in sales that pushed his business from marginal profitability into the red. He wanted more business and help with a marketing plan. My initial review showed that most of his business transactions were by cash. I asked if he ever audited his cash or checked to make sure all the cash was recorded. The short answer was no.

In checking into the situation, the material usage was up 5% while recorded ...

When to give Up

Steve Marr — Fri, 30 Nov 2012 23:19:01 +0100

Often we take positions that become inflexible. The Lord spoke through Isaiah and said, “"But they refused to pay attention; stubbornly they turned their backs and stopped up their ears.” (Zechariah 7:11 NIV)

The ...

Check Out Your Business Providers And Vendors

Steve Marr — Thu, 29 Nov 2012 09:49:09 +0100

Today, we tend to do business with people we hardly know or have never met. We may buy thousands of dollars’ worth of merchandise on the Internet without connecting to anyone. Fortunately, Federal law provides the ability to return anything you order, and you can contest any unauthorized or un-refunded charges. This gives some level of protection.

Other times we may go to a dentist, art dealer, or even business consultant and do very little vetting of that person. King Solomon w...

Keep a Problem Resolution Journal

Steve Marr — Tue, 06 Nov 2012 08:09:00 +0100

Many Christians keep a prayer journal. When we look back over months or years we can see how the Lord has answered with His “yes,” “no,” or “wait.” If we look back at a prayer journal during times of struggle, we are encouraged to see past progress.

Consider carrying this concept over to your business by keeping a journal of problems you encountered and how you resolved them. Over time you will see a pattern you can use to solve problems faster and e...

Keep Notes when Meeting with Staff

Steve Marr — Thu, 01 Nov 2012 07:20:02 +0100

We often meet with staff at regularly scheduled times (recommended) or as needed. Making and keeping notes is an important part of the process. Scripture provides a model when it says, “Moses then wrote down everything the LORD had said.” (Exodus 24:4, NIV) If Moses needed to make notes, so do we.

The key is to use a format that works for you, one with which you will consistently follow through. Let me explain the system I use.

I meet with most colleagues a...

Lesson from the Gold Rush Reality Show

Steve Marr — Fri, 19 Oct 2012 09:17:23 +0100

Someone suggested I watch the reality show, Gold Rush. They said it would be a lesson in poor management. Perhaps I could get some good blog material from watching it. I caught a few moments of the show and found out that my friend was right. There was poor management, poor follow through, and poor attitudes along with consistent yelling among the team. This begs the question: how could a badly managed, dysfunctional team make money developing a gold mine?

The truth is, the...

Balancing Different Tasks

Steve Marr — Wed, 17 Oct 2012 05:08:45 +0100

We all need to balance different tasks to be successful. However, we have a tendency to spend more time in the tasks we personally like or deem more important. To develop a successful business, we need to balance a variety of tasks.

The Lord spoke to Isaiah and said, “Does he who plows for sowing plow continually? Does he continually open and harrow his ground? When he has leveled the surface, does he not scatter dill, sow cumin, and put in wheat in rows and barley in its p...

Watching Overhead

Steve Marr — Wed, 10 Oct 2012 08:01:59 +0100

One of my clients, "Walker Promotions", sold business promotional items like coffee mugs and logo shirts. The business employed thirty people and had been growing nicely. The problem was that overhead increased faster than sales, squeezing profits. The business went from a good profit as a 15-person company to a small loss with 30 employees.

When business grows, we should be able to obtain a better division of labor. Each person should more specialized and better skil...

Does Capping Commission Make Sense?

Steve Marr — Fri, 17 Aug 2012 07:27:38 +0100

A business owner asked me how he could cap the commission he paid his best sales person. The concern was that this salesperson was going to make more than the owner. The business made around $10 million in sales and employed 6 salespeople who received a commission of 9% of gross sales. The “star” sold $3 million, earning $270,000, a high salary. The next best salesperson earned just over $100,000 while others earned between $60,000 and $75,000 per year.

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Outdated Tools are Like Cutting with Dull Ax

Steve Marr — Tue, 14 Aug 2012 05:26:41 +0100

When we use outdated business tools, it requires more work from ourselves and our staff. King Solomon wrote, "If the ax is dull, and one does not sharpen the edge, then he must use more strength; but wisdom brings success." (Ecclesiastes 10:10, NKJV). Poor tools frustrate everyone because everyone works harder for fewer results.

Last year, I was advised to change from my IBM compatible PC to an Apple. My IBM was getting slow at times and requiring frequent restarts. The Vista pro...

Bill Promptly

Steve Marr — Tue, 17 Apr 2012 11:05:12 +0100

Some clients I work with experience cash flow challenges. They need to increase day to day income. One common issue is failing to bill promptly. Businesses don’t get paid until they send out invoices.

Excuses for late billing range from “I’m too busy with client work” to “I just didn’t get to it.” However, sending out timely invoices is important for several reasons. My experience is that some business people don’t place a pr...

Business Lessons from Restaurant Impossible

Steve Marr — Wed, 28 Mar 2012 05:26:14 +0100

I don’t watch much television; but while recovering from shoulder rotator cuff surgery, I caught Restaurant Impossible on the Food Chanel. I found that it provided several worthwhile lessons we can apply to our businesses. While the show is scripted and dramatized, it still conveys solid principles. You can learn more about the program hosted by Robert Irvine here: http://bit.ly/i2LrOt .

A failing restaurant invites Robert to help turn their business around-...

Accurate Accounting Information Communicates your Financial Condition

Steve Marr — Sat, 11 Feb 2012 07:13:13 +0100

Many accounting statements may be legal and still not reflect the condition of your business accurately.

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Check the value of inventory you carry at cost. One client included over $100,000 in inventory as an asset. However, the cash value was closer to $10-15,000. Could that inventory be sold at cost? If not, write down the true value of your inventory. In this instance, the $100,000 indi...

Year End Equipment Spending

Steve Marr — Fri, 16 Dec 2011 20:23:52 +0100

Every year businesses attempt to manage year-end spending and payments to maximize tax benefits. I am not a tax accountant or CPA, so check with your tax specialist to validate your situation.