Big business problem!

In this type of enterprise, the employees are tired, and the boss is even more tired. They are all working hard for the future of the company, and they have also thought of many new methods, but the results have been minimal. Due to its “top-down” management model, traditional enterprises will inevitably lead to “boss not knowing, employees dare not say” due to poor information access. This is like a hidden disease in the life body, which will not be cured for a long time and will not get rid of it. The operator is quite a headache. Here are some common problems that companies can conduct self-inspection.

1 Meeting efficiency is not high

Meeting is a collective activity for companies to solve problems and issue instructions, but it is also a high-cost business activity. Every minute, it means the total number of minutes of the participants, and many managers of companies have not mastered the skills of the meeting, there are “no preparation before the meeting, no theme during the meeting, no implementation after the meeting, no need to attend the meeting, time The six nonsense phenomenon of “no control, no bounds to speak”.

2 Purchasing wastes time

There used to be a company that, when doing a new project, the daily operating cost of the project team was 80,000 yuan, but on the eve of the product launch, the purchasing department actually spent a week in order to purchase more than 100,000 yuan of packaging. The reason was Find low-priced suppliers to save purchase costs. As a result, the entire marketing team waited one more week to be unable to sign contracts with customers.

This phenomenon actually exists in many companies. Blindly seek to reduce the direct cost of procurement while ignoring the coexisting “hidden costs”. Of course, reducing the direct cost of procurement does not conflict with this article. Here, we are talking about the procurement department of an enterprise. Only by comprehensively weighing various indicators from the perspective of the overall operation can the cost of procurement be truly controlled.

3 Poor communication channels

In most companies, you will find that in the communication process between colleagues, there will be serious distortions, or the words are not satisfactory, or the answers are not asked, or the people are confused… This kind of phenomenon is too small, and it makes many processes. Become an ineffective process, or lose many important opportunities. If it is too big, it may cause hidden dangers to the enterprise.

4 Overtime addiction

Many bosses always think that the “overtime” of employees “forgetting sleeping and eating” after work is a phenomenon of dedication. As everyone knows, this may imply a high cost. There are three reasons:

First, the reason for working overtime is not necessarily due to the heavy tasks, but the inefficiency of employees. Overtime means inefficiency.

Second, working overtime consumes more energy and physical strength of employees and seriously overdrafts the health of employees. In the long run, some important employees will not be able to perform their performance for a long time, and it will bring hidden dangers to the company, such as some mechanical operators. Working overtime for a long time leads to fatigue and accidents, and companies have to pay a heavy price for this.

Third, employees who work overtime do not necessarily have to work properly. Some employees get off work overtime after work. They use the company’s resources to engage in their personal affairs, and at the same time receive the company’s overtime pay. Many companies suffer important losses and data loss. It all happens during off-hours, and overtime has become a blind spot for companies to “hide dirt and accept dirt”.

5 Brain Drain

Many companies are lacking in human resource management. They think that talents are unlimited, and they have become “iron-struck camps”, and employees will naturally become the “flowing soldiers”.

It must be said that the departure of an employee is a cost to the company, because the company has to bear the initial investment of the employee’s training fees, as well as the initial cost of recruiting new employees for the position, and whether the new employee is suitable for the job. The resignation of old employees may also lose important internal data or information due to professionalism, and after resignation, they are likely to enter the company of their own competitors.

Therefore, the loss of employees, especially old employees, will undoubtedly bring expenses to the enterprise several times higher than its income. After many small companies have been in business for many years, you find that they have always been such a small team, and apart from the boss, none of the employees are left from the beginning of the company.

6 position misalignment

There is a famous saying in human resource management “put the right people in the right place”. Unfortunately, there are not many companies that can really do this.

once recruited in a talent market and heard conversations among its employees, saying that every job fair requires all of their staff to move tables and chairs, because it is a rented gymnasium as a recruitment venue. From professional managers to ordinary employees, they have become “porters”. I can’t help but sigh. This company is engaged in talent recruitment and management. How can it spend such a high salary to hire unprofessional porters.

In fact, this embodies a very clear psychology of the bosses. They think that these employees will be used when they are recruited. As long as they can do it with their own hands, they do not need to spend more money to do it. But we found that they paid a high price.

The employees of this company have been complaining all the time, because quite a lot of them are female employees, who have no strength to move desks and chairs at all. Those senior officials have never experienced this kind of “courtesy”, and some have left their jobs. We have never recruited at this job fair, because I don’t believe that such a team can provide me with good service.

7The process is cumbersome

Many of the chaos in enterprises is due to processes. This is a common problem in corporate management. For companies that are slow to develop, their processes must be chaotic or unreasonable. They bear a high cost for this, but they have always turned a blind eye.

Process is the industrial chain of enterprise operations. Like assembly lines, without scientific and reasonable processes, systemic control over various tasks will be lost. Many jobs are abandoned halfway, and many jobs need to be reworked. This will become a mess that binds the company’s feet.

8 Stagnant resources are not utilized

Stagnant resources are arguably the most extensive “hidden costs” in an enterprise, such as idle equipment, overstocked inventory, low-utilization jobs, idle funds, and idle business, etc. Although they may not continue to consume the enterprise However, they are part of the company’s assets, and the company will bear hidden costs such as interest. Therefore, the amount of stagnant resources in an enterprise reflects the level of resource utilization of the enterprise.

9Corporate culture messing around

Some people say that corporate culture is like the soul of an enterprise, which will be reflected in the spiritual outlook of each of its members. This kind of culture began to be established in the early stage of the establishment of a company. It was influenced by the culture, habits, skills, occupation, likes and dislikes of the founders of the company. Therefore, some people say that the corporate culture is the boss culture. However, many people may disagree that corporate culture will become a cost, but it is true. We will find that the employees of some companies are sluggish and extremely inefficient. No matter how good employees are, they will either leave or become like that soon after entering. We have to say that this is an “environmental” issue. And this “environment” is exactly the corporate culture of this company.

Corporate culture is like the life of a company. It will accompany the company’s life. It can only be adjusted, not rebuilt.

10 credit overdraft

This is a cost that involves long-term returns. Operating with integrity is like being a person with integrity. We have found that many companies are accustomed to defaulting on payment from suppliers, defaulting on employee salaries, accustomed to deducting others, accustomed to defaulting on bank loans, etc., thinking that this can reduce the pressure on corporate liquidity.

But in the long run, this will become a serious hidden cost of business operations. First of all, suppliers will definitely include the time cost in their quotations. Such companies cannot purchase the lowest prices of raw materials or services. Secondly, employees are in arrears with wages and violate labor laws and regulations and risk being punished. However, defaulting on bank loans and deducting others will greatly reduce their creditworthiness. When a company encounters difficulties one day, it will be embarrassed. Undoubtedly, enterprises have to pay a heavy price for this, but in fact they have not gained any benefits.

11 Inaccurate risk control

It is the dream of every entrepreneur to push the enterprise to the fast lane. However, the risk factor has also increased accordingly. Especially large and medium-sized enterprises, although they have developed rapidly and have huge incomes, once a crisis occurs, it will be catastrophic. Many cases have proved that many of the risks of enterprises are caused by insufficient anticipation or poor management. Hidden dangers are buried long before the risks occur. And many large companies or well-known companies die out because of a risk.

It can be seen that risk is a decisive hidden cost. However, this phenomenon is not obvious, it is really “not a song, it is a blockbuster.”

12 Entrepreneur self-cultivation

“Entrepreneur cost” refers to the cost that the owner of the enterprise brings to the enterprise. There is a good word, a raging soldier, and a raging nest. Entrepreneurs are like the leader of an army, and they themselves are the most expensive employees of the enterprise. The bosses of many private enterprises have turned themselves into the “emperor” of the enterprise. Everything has the final say, and all employees have become execution machines. However, the shortcomings of the entrepreneur’s personal factors will add a heavy cost burden to the enterprise.

This phenomenon is mainly reflected in small enterprises, but this phenomenon also exists in large enterprises, and we can also extend this cost to every department or even every employee of the enterprise. Because everyone is responsible for their own work, we often emphasize that in your scope, you are the leader and you have the right to make decisions. Many leaders have always focused on themselves, which will greatly reduce the team’s combat capability and increase the high hidden costs. I remember once said to a boss who complained about the company’s lack of talents: “What your company lacks is not talents, but the wisdom to discover and make good use of talents.”

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