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