How Business Unit Managers Effectively Use Resources Reducing Productivity Loss To Zero

As business unit managers, one needs to manage people effectively and fully use materials or assets. For example, a pump or a printer is also an asset, which we use and so we need to measure it’s effectiveness. An effective pump runs more and costs less in maintenance; same applies for printers. These are business assets, where we need to choose them for reliable performance and better use. Let’s now turn to people and labor.

2016-09-29 blog 38 how business unit managers effectively use resources reducing productivity loss to zero


For a business unit manager to know if people are effective, he or she needs to first look at job descriptions and see how each adds value to business performance. Someone rightly said: “People finish what you measure.”

A Key Performance Indicator (kpi) method allows the business to measure work, which affects performance. So the business unit manager defines kpi’s, which improve business results. 

If you imagine yourself to be on vacation and if you have exactly 5 minutes each day to check your business performance, you have to ask yourself: What are the 3 items I’d like to know about sales or marketing performance, which would tell me if the business is on the right track? What’s the cost for each lead in marketing? Is it appointments conducted, sales closed, sales rate or revenue produced for sales? Or do you need to check all of them for your business unit? That’s a decision for the business unit manager. Similarly for production, do you measure units made by hour, gross profits by unit, unit returns, inventory turns, average transaction value, employee billable hours, labor rate, repeat customers or sales by customer?

KPI’s show your employees how they’re performing so they can focus on improving business results. It’s the business unit manager who has to pick the kpi’s and know why he picked them.

Next, it’s crucial to see how the kpis affect the objectives of the strategic plan; daily, weekly, monthly, quarterly or yearly. If they aren’t moving the needle forward, then the business unit manager has to re-evaluate kpis he selected. The strategic plan is the one page business dashboard. So the business unit manager needs to decide how he’ll share the kpis and how soon, so employees can know how their work ramped up the business.

KPI’s show your employees how they’re performing so they can focus on improving business results. It’s the business unit manager who has to pick the kpi’s and know why he picked them.

If a business takes these steps, it could dodge complex tools and advance for better results.

Written by Suresh Iyengar, P.E., President, Business Unit Execution LLC––“Explosive Business Coaching Houston Results For Small Business”. Want even faster results? Are you ready to learn? Call 281.410.5375 and speak to your Profitability Coach Houston today!

© 2012-2017 Business Unit Execution LLC. Engineering Explosive Results For Houston Small Business Owner™. All Rights Reserved 
EMAIL US   |  ABOUT US   |   REVIEWS   |   SITE MAP   |   TERMS OF USE   |   PRIVACY POLICY
Sugar Land, Texas 77498
TOP