Finding Answers

The kingdom of your business is made up of two entities: the employees and the vendors. Each has desires that can compliment and compete against each other. Each provides your business with information that is tainted with bias and self-interests, yet valuable none the less.

The Vendors’ Desires

The desires of the vendor is to have a client use, promote, and re-purchase the products/services that the vendor provides. Each visit to a client is designed to move a decision further towards a purchase. The vendor rewards, showers with praises, and offers incentives to the client for each purchase that is made. When times are good the vendor is the client’s best friend.

This Vendor Wants You To Write More Rx's

Mere managers and executives mistake these overtures as testaments to their authority or their power. They become enthralled with the ability to get the vendor on a moments notice to fulfill any desire. These managers forget that it is the power of the purse and their capability to purchase that brings them such power.

These managers begin to believe that the desires of the vendor is akin to friendship. They forget that the information the vendor provides is biased with the vendor’s desire for more business and more sales. Unlike a business owner, these managers will allow declines in service and response times to slide because they “know” the vendor. They are willing to put up with poor quality because searching for a new vendor is difficult and time consuming. They are blind to the subtle and incremental price increases the vendor adds over time. These managers and executives are always surprised when the vendor folds.

The successful business owner knows the relationship to the vendor is about one thing only: business. A successful business owner uses this fundamental understanding in every dealing they have with a vendor. It does not mean that they will disrespect the vendor or maltreat them, instead the business owner will never forget that through all the pleasantries business is the underlying purpose for every visit.

This keeps the owner vigilant about quality, delivery, and experience it’s business has with the vendor. The owner does not tolerate anything that would fall below its own standards for products and services. The business owner challenges each price increase and requests by the vendor that its business “upgrade”. The business owner is always willing to find another vendor that will meet its needs and standards for service.

The successful business owner knows that it is in the customer where all the power lies.

Unlike the manager that is blinded by the “friendship” with the vendor, the owner recognizes that price increases, frequent request for new purchases, and declines in service are all signals from the vendor. Information that when placed next to the signals from the marketplace can be warnings of threats and opportunities to the owner’s business.

Unlike the executive that enjoys the power of the purse and the accolades it brings from the vendor, the business owner seeks a vendor that will compliment the productivity of their employees. The business owner will award a vendor with a contract or purchase only when the vendor helps the owner’s business increase its value to its customers. The successful business owner knows that it is in the customer where all the power lies.

The Employees’ Desires

A decent wage, promotion, titles, benefits, bonuses, and job security are but some of the desires of employees in any given business. When an employee feels that these desires are met and at times exceeded by a given employer than productivity increases. When these desires are not met and are sub-standard then productivity

Without Customers There Is No Need For Staff

decreases with quality and the business is in dire straights. Or is it?

The manager who treats their employees like servants should never be surprised that their work is substandard, quality is shoddy, and productivity poor. That part of the equation is a truth. Yet, the manager that compensates employees without discernment or overly provides too much, is placing their business at risk when conditions change. Those managers are blind by their wanting to be loved and liked. They do not see that by giving into the desires of employees can create discontent when salaries, benefits, awards, and jobs have to be taken away. These managers are blind to fact that by overly spoiling their employees can erase the desire to stretch for the finish line or push for the extra mile.

The successful business owner understands that the employer/employee relationship is about one thing: business.

The owner believes that employees should be rewarded for hard work, yet it recognizes that not all employees are the same. The business owner knows that employees will always desire greater wages, greater benefits, and job security. They also know that these desires are measured on a scale with the realities of the marketplace as a counter weight. The business owner seeks to obtain a close equilibrium as possible, never allowing the desires of the employees outweigh the realities of the marketplace. The successful business owner understands by doing this he/she keeps people employed, rewards success, keeps merit the focal point of promotions, keeps benefits funded, and keeps employees motivated to service the customers of the business.

The successful business owner hires the best, compensates above the competition, motivates the workforce, and moves employees up or out.

The successful business must forever be vigilant in listening to the members of their business kingdom. Not doing so puts them and their business in grave peril. So like with the marketplace, the successful business owner must train their ears to determine what desires are to be fulfilled and which are not.