Using a Scorecard to Turn Risk into Profit
Several years ago, I led a company that grew and distributed perennial plants. Located in the Midwest, our selling season was quite short, putting a premium on quick decision-making while “in-season” to maximize revenues and profitability. Hours, days and weeks mattered, not months. One of our biggest customers was a large home-improvement chain. They set very aggressive expectations for their vendors, but at the same time, they weren’t especially well-organized against the demands of a short selling season. They often made it hard for us to make the quick decisions required for us to serve them efficiently and profitably.
The Cost of Ned
Knowing which employees really “belong” in your company is a puzzle. Life and business go smoothly when your people fit your company’s culture (“Right Person”) and sit in seats that they’re ideally built for (“Right Seat”). On the flip side, the cost of getting it wrong is also very real. But how can you put your finger on whether you have Right People sitting in the Right Seats?