Bob is the founder and president of Bob's
Printing Company, Inc. Bob learned the printing business during ten
years running a press for a large family-owned printing company. When
his former company was sold to an out-of-town buyer, Bob lost his job.
He figured, "Hey, I know how to run a printing press. Why not be my
own boss?" And so Bob's Printing Company was born. Bob's gained
some business from some of his former employer's customers and enjoyed a
fair amount of success early on. But soon sales reached a plateau and
frustration ensued. Bob's Printing is now in its fifth year.
Monday June 29
Bob is almost always the first to
arrive and the last to leave. Today is no exception. As he unlocks the
doors at 6:30AM, he looks around. He briefly remembers the feelings he
had opening up during his first few months in business ... excitement
and anticipation. His name was on the building and everything in the
place was his - the furniture, the printing presses, the computers -
even the pens in the drawers. Just as quickly as he recalled these
positive emotions, they are replaced by anxiety.
Last Monday, his main press operator
who had been with Bob since day one, Jeff, quit with no notice. He
simply showed up at Bob's office and announced he was quitting
immediately. Jeff apologized for leaving without any advance notice, but
said that another opportunity came along that required him to start
right away. When Bob asked Jeff about his reason for leaving, Jeff
remarked that he felt disconnected from Bob and from the company. His
suggestions for improvement had not been implemented, and his
constructive criticism about their benefits plan had also gone nowhere.
Bob was hurt by Jeff's actions and by his comments, but deep down inside
Bob knew Jeff's observations were right on.
They were already behind schedule with
some of Bob's most important customers. This loss of key personnel
weighs heavily on Bob's mind as he makes his way to his desk, which is
overflowing with stacks of papers and unopened mail. His "help
wanted" ad ran in yesterday's paper, so Bob expects to start
receiving resumes early this week.
Bob turns on his computer so he can
check his email. His email inbox has dozens of unread messages, so he
scans for important-appearing subject lines. Seeing none, he decides to
fill in at Jeff's station. He's running the press when the staff begins
to arrive and stays there until around noon.
After a quick lunch consisting of a bag
of chips and a cup of coffee, Bob is confronted by his bookkeeper, Joan,
who wants to talk about past due receivables. "Our cash flow is
still a problem", explains Joan. "More than 25% of our
receivables are over 60 days old." Bob knows why. Due to the
relationships he had developed with his customers as he built the
company during the first couple of years, Bob had made it his personal
job to call and follow up on past due invoices. But things have gotten
so hectic lately that he hasn't had time to make collection calls.
"OK, I'll try to make some calls this week", Bob says.
Before he can even think about when he
might make these calls, the company salesperson, Sally, sticks her head
in Bob's office doorway. "We've got a problem. I promised the
purchasing agent at Hastings Landscape that we'd deliver their brochures
tomorrow. Since they gave us the job three weeks ago, this should have
been plenty of time. Now I hear that it's not even on the press
yet."
"I'm sorry, Sally. You know we've
been behind. Our new employees aren't up to speed yet. And now, Jeff is
gone, too. I'm pitching in and will get that job out for you on
time." As Sally thanks Bob and turns to go, Bob follows her out and
heads back out to the shop floor.
At 6:00 PM, Bob calls home to tell his
wife Abby he'll be late for dinner. He finishes the Hastings job and
heads out the door around 8:30. Bob gets home just in time to tuck his
son and daughter into bed.
With the kids asleep, Bob and Abby have
time to talk. Abby is concerned about the family's financial situation.
"Bob, you haven't given yourself a raise in 18 months. And, you're
not putting any money into the company retirement program."
"I know, but because of our cash
flow, it just doesn't seem like a good time to take more money out of
the company. I'm sure things will improve soon. Let's shoot for
retirement savings and a raise starting next January."
Abby isn't satisfied with Bob's
response but can tell that her husband is too tired to get into a deep
discussion. She was supportive of starting the business, but five years
in, Bob is only slightly above the income he made at his previous job.
Abby is less concerned with Bob's income than she is with his outlook.
He seems to put the company's well-being above his own. "Didn't we
start this company to enhance our family's situation?" she thinks
to herself.
Tuesday June 30
Bob starts the day in his office at
7:30AM. He has intended to sort through his mail and get caught up on
email for some time. He manages to make a dent in the pile of mail by
9:30 when the mail man arrives. Bob opens the mail and finds 6 resumes
for the press operator job. Sorting through them, he concludes that 4 of
the candidates have adequate qualifications for an interview. By noon,
he manages to speak with 3 of the applicants. He sets up interviews for
later today and tomorrow.
He spends the early part of the
afternoon getting to the bottom of his pile of mail, but before getting
to his emails it's time for his first interview. Bob greets the
candidate, Larry, waits for him to fill out an application, and sits
down for the interview. Bob does most of the talking, describing the
company and his own background. The questions Bob asks center on the
candidate's job qualifications and experience. The interview only lasts
about 20 minutes.
By mid-afternoon, Bob is back in his
office and finally digs into his email. He has 74 unread messages, some
received as long as 10 days ago. Even though he has been scanning for
important messages, he is shocked to discover that he had overlooked a
message received from one of his top accounts, Brewster Manufacturing,
on June 22. Brewster has been approached by one of Bob's competitors and
wants Bob to send a new price quote by June 30 - today! Bob quickly
calls his contact at Brewster, Linda, and gets her to agree to a one day
extension on the deadline.
Brewster has been one of Bob's top
revenue sources almost since day one. "How could I have missed that
email?" he wonders, as he begins work on the quote. Bob could turn
this job over to Sally, but Bob considers Brewster to be one of his
"pet" accounts, so he tackles the job himself.
At 5:00, the phone rings. It's Bob's
wife, Abby. "Where are you?" asks Abby, obviously irritated.
Bob instantly realizes he has forgotten about a date he had made to meet
Abby and the kids at the mall to shop for a new TV. He frantically looks
for the sticky note he had on his desk as a reminder, as if it would
help to find it now. "I'm so sorry, honey. Big problems with one of
our top customers. How about if you gather the brochures and we'll look
at them together at home later tonight?" Abby reluctantly agrees,
and Bob goes back to his work on the quote. At 7:30 PM, he heads for
home although some work remains.
Bob is oblivious to the fact that not
only has another month ended, he's just reached the mid-year point. The
first year in business, Bob eagerly anticipated the end of each month.
There was usually a big push to finish the month with a bang, and every
month's results were better than the one before. Now, he is simply glad
to see each day end.
Wednesday July 1
At 6:45 AM, Bob picks up where he left
off the night before. He finishes the Brewster quote at 11:30 and makes
the 20 minute drive to Brewster's facility. Bob drops it off, eats a
fast food lunch in the car, and gets back to his office in time for his
next press operator interview.
This interview goes much like the one
on Tuesday. For the last two years, Sam worked for Bob's largest local
competitor, Smith Printing. Bob asks Sam lots of questions about his
experience there. He has little good to say about Smith and says he left
over a dispute with his manager. Bob is already thinking that Sam might
be able to reveal valuable information about the competition, although
he came across as a bit arrogant. In fact, Sam seemed disinterested in
anything about Bob's Printing other than pay and benefits.
The rest of the afternoon is spent
conducting one more interview, getting caught up on mail and email, and
reviewing additional resumes that came in today. Since he stood up the
family last night, Bob leaves the office at 5:00 for the first time in
weeks.
After dinner, Bob calls one more
applicant and sets up one final interview for Thursday afternoon.
Thursday July 2
On Thursday morning, Bob gets to the
office at 7:00. On his desk is a note from Sally: "Hogan order MUST
go out by noon on Thursday." Bob sighs and heads back to the shop
for another day on the presses. By 2:00 PM, he gets the Hogan order
finished, checks his email, and prepares for the last job applicant he
has lined up.
Bob completes the interview at 4:15 and
remembers the collection calls he promised to make. He makes several
calls but gets nothing but voice mail. "Too late in the day to
catch anyone at the office", thinks Bob. He spends another hour
running the press, trying to get the workload caught up, and leaves for
home at 6:00 PM.
Friday July 3
Arriving at 7:15 AM, Bob sits down with
the press applicants' resumes and his notes from the interviews. None of
the candidates really impressed him, but Bob is getting tired of running
the presses and being so harried. Sam, who worked at Smith Printing, had
extensive printing experience and said he could start immediately. At
9:00 AM, Bob calls him to extend an offer. Sam asks a few more questions
about the vacation and health insurance plans, then accepts and agrees
to start next Monday morning. Bob feels a sense of relief despite his
nagging doubt about Sam's "fit" in the company.
Right after lunch, Bob gets a call from
Linda at Brewster. "Sorry to have to deliver bad news, but we're
going to move a good chunk of our business to Johnson Printing."
Bob is stunned. "Wow! I thought we
had a good relationship. Do you mind telling me how much they undercut
our price?"
"Your prices are still
competitive, Bob. The problem is turnaround time and general
responsiveness. Our people just feel like your level of service isn't
what it used to be. We'll still give you some work, but our larger jobs
will be going to Johnson for the rest of this year. We'll revisit the
decision in January so you'll have a chance to regain all our business.
But, you'll definitely have to improve the service to have a shot at
it."
Right after he finishes his
conversation with Linda, Bob gets another call. It's Walter, his loan
officer at the bank. "Hi, Bob. I'm just calling to remind you that
your open line of credit requires you to submit monthly financials to
us. We never did get the May statements. Since you're halfway through
the year now, I thought I'd call and see how your year is shaping up.
Have you closed the June books yet?"
Bob was caught completely flat-footed.
Mixed sensations of embarrassment, anger and disappointment flood over
him. He hasn't paid attention to his financials in months. He's been too
busy putting out fires. "Walt, I don't think Joan has closed June
yet. I'll make sure she gets those reports to you next week."
"OK. Please also have her send me
the May statements as well. By the way, have her also send a copy of
this year's business plan. I don't see that in your file. Have a good
weekend."
Bob realizes he has dodged a bullet. He
didn't answer Walter's question about his year to date results. Other
than a vague idea that things must not be too bad since he has been able
to make payroll and keep a little money in the bank, Bob honestly didn't
know how things were going. And, he didn't have a current business plan
to send. He had written a solid plan when the company started and really
used it the first year. For the next year or two, things were going
pretty well and the company was growing, so he just updated the original
plan but didn't really refer to it. By late last year, things were too
hectic. By the time he even thought about planning for the new year, it
was already here.
Sitting back in his chair, Bob reflects
on the past week, his business and his personal life. Forgotten
commitments to his family. Putting out fires. A lost customer. A
frustrated salesperson, clearly losing confidence in the company.
Employee turnover. A rushed hiring decision. A growing collections
problem. A business without direction. An out of control schedule.
Everything is a blur of activity. How did it get to be this way? How can
it get better?
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