Resolve and thou art free.          ~ Henry Wadsworth Longfellow

It’s been 17 days since the New Year began.  Have you thrown away your New Year resolutions yet (control costs -- increase sales -- increase profit)?  Every year we go through the same routine of promising ourselves to break our bad habits as if, magically, January 1st will bring us the resolve, the willpower, and the self-discipline to succeed.  The problem is baggage.

Yes, the old year is over and the New Year is here.  And yes, there is an opportunity for a new start.  The baggage -- last year’s unresolved issues, bad habits, and poor practices -- have come along to your New Year’s party.  They are all quietly standing in the corner of the room -- waiting.  You see, these Habits don’t like parties.  They want to go back to the way it used to be.    They like the feelings of comfort, decisiveness, and ambiguity, and the sooner this little feel good party is over, the better.

Reality Check

The truth is that the only thing new about New Year’s Day is the year -- January 1, 2005.  Everything else operates on a continuum, moving from the past, through the present, toward the future.  Contrary to the financial brokers’ favorite saying, past results are good predictors for future performance.  In order to improve on last year’s financial performance we must do two things:  one - do more of what worked; two - do less of what didn’t work.

Three Guarantees

In spite of our little party poopers over in the corner, there are three areas that every business can examine to get better results in 2005.  How you use what you learn is up to you and your organization.  The key is to do it -- starting today.

1. Financial Fitness - Positive cash flow and profitability make your daily efforts at work worthwhile and rewarding.  The lack of either cash flow or profits turns work into drudgery.  Successful organizations pay close attention to financial details on a daily basis.  They track sales and profit goals daily, weekly, and monthly.  Results are reviewed and posted for everyone in the organization to see.  Costs are micro managed relentlessly and proactively, and reviewed openly and frequently.  Reviewing financial results on a monthly basis allows managers to make adjustments that will ensure success by the year’s end.  Small problems rarely disappear; instead they grow larger and the next thing you know they’re tagging along to your next New Year’s party.
2. Customer Service - The biggest opportunity for improvement in today’s economy is in customer service.  Excellence in customer service is now the exception to the norm.  How many of your customers have a "WOW" experience in your business?  The way to find out is to survey them.  By simply askiing for input you raise their opinion of you.  By implementing their suggestions you deepen their loyalty and increase positive word of mouth advertising.
3. Growth - By focusing on financial fitness and customer service most businesses  will achieve growth in sales and profit.   Sustaining fiscal growth over the long run requires intellectual growth.  Resolve this year to invest time and money in the intellectual growth of your work force.  Revise your existing training programs.  Bring in outside trainers or send employees off site for training.  Continuing education and training will reinforce the daily efforts to increase sales and profit and to improve customer service.

2005 is here and it looks promising.  According to The Institute of Supply Management, manufacturing activity expanded for the 19th consecutive month in December, suggesting that the industrial sector entered the new  year with solid strength behind it.  Norbert J. Ore, chairman of the institute’s survey committee, said the December results were "driven by a significant increase in the new orders index."  Our local economy and the national economy each show signs of strength, growth, and stability.  However, factors that create volatility (political change, war, terrorism, and natural disasters) are still present.

No one knows with any certainty how long the current window of opportunity will be open.  By focusing on financial fitness, customer service, and growth in 2005, you will be better able to take advantage of the opportunities that are currently available to your business.  Who knows?  Perhaps fewer unwanted guests in the form of unresolved issues, bad habits, and poor practices (who were never invited in the first place), will be at your New Year’s party in 2006.

Happy New Year!

This article is provided as general information and is not intended to be a substitute for legal or other professional advice.