Throttle Control

If I’m honest the last couple of years have been a bit boring. The pressure has been huge and despite my best efforts it has felt like our company has stood still. Having less revenue and low profit is like having your hands tied. The focus turns to cash flow and bank balances rather than growth and prosperity - it becomes very academic and far too sensible.

Recently I’ve discussed whether or not it is the right time to start investing in maintaining our competitiveness. I suppose what I was actually doing is asking if now is the time to develop an appetite for risk? Is it time to stop managing the effect of a recession and instead start thinking about an upturn? After all, we’ve been on the up since the start of this year.

If so then, just the thought of growth and development gets me excited. It is just like starting the business all over again. I remember the early days when I innocently believed I could change the world with an idea or vision - just the enthusiasm alone was enough to win new customers and that enthusiasm was incredibly infectious!

Currently, I’m going right back to basics and questioning what was the key to our growth? Was it really just a pure belief? The big difference this time is that we have the experience to harness the raw hunger and sincere passion of that belief. We also have the technology, the resources and knowledge to make it all count.

Information, Position, Speed, Gear, Acceleration

So there I am, in a warm breeze, on a golden beach, under a perfect blue sky, staring at the Mediterranean Sea. Usually at times like this I ponder and isolate myself. Then in a moment of sensation there is an idea that changes everything.

A few weeks ago, I missed a blog because I took a week away in the sun. I expected the creative juices to flow but on this occasion it didn’t happen. Instead the break made me reflect on the fact that creativity is not our current solution.

The more I thought about where our business is, what is happening and what is at our disposal, the more I comprehended the need for belief, leadership and execution. So if the jigsaw pieces are all in front of us, surely all we need is the confidence to assemble the BIG picture?

On The Up

Since the start of this year our figures have improved. Not just slightly but quite considerably. That means we are generating revenue and it means we are revisiting the plans we placed on hold two years ago.

When the financial crises hit the headlines in September 2008 we were aware of the news and exercised caution but there was no visible effect on our turnover. We remained cautious in to 2009 but still there was no effect. We began to think we were immune and perhaps we should carry on regardless?

In April 2009 the impact of the recession struck. Bookings stopped and our drivers had time on their hands. We abruptly encountered a different situation. Our cash flow suffered, our profits disappeared and plans for growth were put on hold.

A veteran of two recessions offered me some advice. He simply said “Don’t spend a penny!” and with hindsight he was right. The danger now is holding that position for too long and I believe at some stage we have to start action for growth. With revenue increasing, the big question is, should we start spending?

Competitive Information Technology

Few people know it but Henry Ford picked up the idea for an assembly line from an abattoir. He simply took the principle of a disassembly line and reversed it. By implementing mechanisation and standard procedure in a process he achieved economies of scale. The system was known as mass manufacture.

When the Japanese decided to produce cars in large numbers, they took the principle of mass manufacture and questioned where waste could be removed. They call it ‘lean manufacturing’. They focus on the value adding part of a process and then set about removing everything else.

In previous blogs I have discussed a common theme of efficiency, innovation and strategy. I have written about transposing information; exploiting the power of databases; controlling costs and improving quality. All these equate to establishing and maintaining a competitive advantage but for me, at the very centre of these issues and the real key to success for a service company is how we collect, control and processes data. Just like Henry Ford’s production line there are huge advantages in developing standard procedure and automating processes. As in the Japanese principle too, if those processes are lean and efficient in adding value they deliver maximum benefit.

At the end of the day we have to be realistic and recognise most people can drive and many chauffeurs offer a quality service. However, what a large number of chauffeurs neglect is the streamlining and efficiency of their data acquisition and information processing. Further still the majority fail to facilitate remote processing of that data. For me this is critical! It is the key to achieving economies of scale, maintaining quality and reducing cost. After all, isn’t that what being in business is all about?