[Management Column Vol. 77] Are We Developing a Habit of Procrastination?

basic information

Please use this as hints for management decisions, such as building a management foundation, improving management quality, cash flow management, bank relations, business succession, and restructuring after the appointment of the second or third generation. Also, feel free to contact us with any questions or inquiries when putting this into practice.

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Applications/Examples of results

As the saying goes, "In offense, there are clever moves; in defense, there are established principles," it is crucial to return to the fundamental principles of management during tough times and to reassess your company's challenges without postponing them. First, let's confirm the following three points: 1. Low gross profit (contribution margin) Are there issues with the profitability of the products or services offered, or their alignment with customer needs? 2. High gross profit but low operating profit Are there problems with the way business is conducted, productivity, or management? 3. High breakeven point Are fixed costs and personnel allocation appropriate for the current scale of the business? Furthermore, it is necessary to review the labor distribution rate and organizational structure, taking into account the industry, scale, and productivity. Understanding problems through numbers, setting priorities, and taking swift action are essential. A proactive attitude toward addressing challenges is the first step toward recovering performance. Next time, I will share the "Requirements for Surviving the Era of Great Confusion."