| These are the rainy days we hoped would never | | | | reluctant to make any ill considered decisions. |
| come. We are living in a time of tightened purse strings | | | | Joe arranges a one day consultancy with Patrick to |
| and uncertain prospects. The shadow of the bank | | | | discuss his options. He has a few ideas but knows |
| manager looms over many previously flourishing | | | | that Patrick has been doing a lot of work in this arena |
| businesses. | | | | and so will have ideas of his own. |
| Difficult decisions are being made everywhere. | | | | Instant Pay Off |
| Business owners are searching for financial stability, | | | | |
| managers for the consistent performance results | | | | An additional advantage of using BI for this task is that |
| which will signal job security. | | | | it provides a solid proof of why a certain employee |
| But whilst the current situation may be grim, there is | | | | has been made redundant. This can help explain the |
| gold at the end of the rainbow for those companies | | | | situation to the employee themselves and usually |
| which do survive this recession. Rewarded with a | | | | curtails said employee from wanting to appeal the |
| bigger market share, and armed with the kind of | | | | decision as they know it is based on fact rather than |
| confidence that outrunning the predator brings, these | | | | personal opinion. |
| businesses will step out into a brighter future and reap | | | | The avoidance of one tribunal can be enough to offset |
| the rewards. | | | | the entire cost of the BI development. |
| Business Intelligence can help you to ensure that your | | | | Soft Advantages |
| business is one of those survivors. | | | | |
| Undeniably the most pressing issues facing any | | | | Basing a redundancy on facts and figures that can be |
| business are those of eliminating unnecessary cost in | | | | demonstrated and shown to the employee goes along |
| all areas, attracting and servicing custom and avoiding | | | | way to removing the personal element that can cause |
| the cashflow pitfalls of debtors and poor decision | | | | the employee to take offence and make a bad |
| making. | | | | situation worse . |
| The good news is that for every one of these crucial | | | | Using BI to analyse performance before making any |
| areas, there are ways to excavate the secrets to | | | | redundancy decisions also sends a positive message |
| maximise profit and uncover the potential in the data | | | | to the more capable of members of staff that their |
| you already hold from your day to day trading | | | | hard work has not been ignored. |
| activities. | | | | Experience has also shown that overall productivity |
| BI can aid a company’s survival during the lean | | | | tends to increase as employees have positive goals to |
| times as well as its expansion in times of abundance. | | | | work to rather than just waiting for the hammer to fall. |
| While they are an undeniable fact of a tough | | | | Because of the nature of the business requirements |
| economic climate, redundancies are never a nice | | | | driving these reports, they can also be used for |
| event, but selecting the wrong person for redundancy | | | | awarding bonuses or evaluating staff for promotions |
| can be a disaster both in monetary terms and for | | | | or pay rises when more abundant times return. |
| staff morale.< | | | | Joe gives a broad idea to Patrick of the factors he |
| And the beauty of BI is that it can fine tune decision | | | | wants to measure his employees by, as well as |
| making. With all the information to hand new options | | | | investigating the general statistics regarding cash flow |
| can be considered. | | | | and profits. |
| Maybe your call centre is open from 08:00 to 18:00, | | | | Because of the economic climate the consultant has |
| when only two calls a month are received after 17:00 | | | | produced these reports many times in recent months |
| and none until after 09:00. Cutting the working day by | | | | for many businesses in all types of sectors. It is a quick |
| 2 hours for four employees saves a fifth from | | | | job for him to alter some existing reports for the staff |
| redundancy and does not impact the service to the | | | | evaluations. |
| customer. | | | | However, the reports for cash flow are more specific |
| BI provides the means to explore these opportunities | | | | to Joe’s Garage and so it is quicker to develop |
| and really fine tune a business. | | | | these from a fresh start, though the reports the BI |
| Using the call centre example above, the workload can | | | | Consultant has previously developed for Joe are |
| also be determined based on the length, frequency | | | | certainly a help. |
| and distribution of enquiries and an accurate estimate | | | | Hiring Expertise |
| of the man hours needed to cover all calls. | | | | |
| Joe’s Garage is going from strength to strength. He | | | | The options for implementing employee evaluations |
| has bought two more struggling garages and through | | | | are the same as for any BI implementation and are |
| his approach of specialisation and Business Intelligence | | | | covered in my article “Business Intelligence - Project |
| driven decision making. | | | | Management Tips”. |
| Then, disaster. In an attempt to rejuvenate an ailing | | | | Some of those options may seem expensive to a |
| motor industry, the government introduce an initiative | | | | struggling company. However, because of the |
| where driver get £2000 guaranteed for their old cars | | | | commonalities with HR reporting an additional option is |
| when they trade them in for a new car. | | | | available in the form of off-the-shelf reporting packs. |
| Suddenly, Joe’s customer base is buying new cars, | | | | These are a set of reports that should cover most, if |
| not repairing their old ones. | | | | not all of a company’s requirements with a |
| Striking a Balance And What Your Business Needs | | | | minimum of configuration, and such a product is |
| | | | available to purchase from Scry Business Intelligence |
| As is no doubt apparent, Business Intelligence really | | | | Ltd. |
| comes into its own when providing guidance in | | | | The strength of these report packs is that they tend |
| company critical situations. | | | | to be comparatively inexpensive (Scry’s Employee |
| But things are not quite that cut and dried, and following | | | | Evaluation Pack is less than the cost of a single day |
| BI generated results blindly can be as harmful as | | | | consultancy) and quick to implement compared to |
| operating without guidance. | | | | beginning from nothing. |
| BI should aid decision making, not replace it. This is true | | | | I personally recommend starting with a report pack |
| in all cases, but is particularly crucial when a company | | | | and complimenting it with a few days consultancy to |
| is endeavouring to survive a drop in the market place. | | | | amend and tweak the pack to your company’s |
| BI can also be used to justify a decision which has | | | | specific requirements. Ideally, hire a consultant from the |
| already been made. To provide a simple example, if | | | | company that developed the pack and so is familiar |
| you are fully aware that one employee has a poor | | | | with its contents. |
| absence record and worse timekeeping, then providing | | | | This approach should cost less than a photocopier, and |
| proof of this to back up your decision makes it seem | | | | can save a struggling company. |
| more considered. | | | | While the types of reports are the same for any type |
| Indeed, it is. And a quick look at said employees work | | | | of BI implementation, dashboards really come into their |
| performance may reveal they are more productive | | | | own. |
| than those that do have good attendance record. | | | | Being able to provide an overview of an employees |
| In this case it may be worth warning the employee (or | | | | entire work based ranking, from accuracy of work to |
| buying them an alarm clock). | | | | time keeping, is a powerful tool. |
| However, some things will never show on a BI report, | | | | With all the information at his fingertips, Joe looks over |
| such as how well an employee works with others and | | | | his company. The news is not good and it is clear that |
| such soft skills. | | | | the garages are losing more money than he first |
| Recession based BI is not just about cutting hours or | | | | thought. |
| downsizing the workforce. It can also assist in fine | | | | Joe has only just built his empire and is reluctant to lay |
| tuning other business practises that can make all the | | | | off any of his employees. He rings Patrick and |
| difference when every penny counts. | | | | requests a few additional options on his reports to |
| Identifying which customers take months to pay and | | | | allow him to explore a particular idea his has. |
| insisting they pay in advantage (or not to deal with | | | | New versions of the reports are supplied and Joe is |
| them at all) can have a huge positive impact when | | | | able to juggle the numbers to reach a viable solution |
| cash flow is so important. | | | | with minimum damage. |
| Outstanding debtors can be categorised as regular | | | | Joe consults with his employees to gauge their |
| clients and one off customers, and treated according | | | | reaction to his proposal. |
| when reminding them of their debt. | | | | Joe cuts everyone to a three and a half day week |
| Focused marketing is also an ideal strategy when | | | | and closes two garages. No employees are made |
| cash is short and your customer base needs | | | | redundant, instead the week is split so that one team |
| extending. | | | | of mechanics work the first half, the other team the |
| Other, more company specific analysis may be | | | | second half of the week. |
| invaluable to cutting costs. Any company that features | | | | Between the cost cut on the lack of rent for the two |
| transport in its services or business process may want | | | | closed premises and the cut working week, Joe is |
| to geographic reporting to compare actual mileage to | | | | back in profit for the time being. His employees are not |
| ideal distances. Some longer routes may be quicker | | | | overjoyed about the shortened week, but prefer it to |
| than short ones, but the savings in fuel may make it | | | | being unemployed and Joe has assured them he will |
| worth it. | | | | pay flat rate overtime when the work load justifies it. |
| Joe knows that all will return to normal in a year or so, | | | | Mistakes in this situation are not just a loss of |
| when the new cars are in need of servicing or repair. | | | | opportunity, but a possible crippling blow, so every |
| But currently, his target market is down forty percent. | | | | decision should be supported with as much information |
| For his business to survive he knows he needs to take | | | | as possible. Business Intelligence can make the |
| action, but the severity of the situation makes him | | | | difference between flourishing and floundering. |