How Much Revenue Are You Wasting Due to Inefficiency?
Perhaps we have heard about classic cars and their incredible price ranges. Some would say vintage car owners are crazy for paying or asking for such amount of money for an antique vehicle. Others can see it as a bargain, as something they can justify. The issue here is the balance between price and value. To have something of real value, there is a cost involved, right?
The Science of Economics has discussed broadly how prices are constructed, yet there still is not a conclusive concept. One aspect is how buyers build their perception of “price according the value they give to the asset” (of course there are a lot of other issues to take into account but we are not going to tackle on them on this article).
So the first perception could be: Is this situation/opportunity representing to me an asset or a liability? Author Robert Kiyosaki has a radical concept of asset: Is all that is used to generate an income. So under this idea a house or a car could be a passive while it is not used for some kind of business. This is not – in my opinion – definitive, because the house we live has a value not only in the books but for us.
Where am I going with all this? Why, trusses of course!
You see, I was once one of those designers that was just “plopped” into the seat and told to figure it out. I was given almost no information to work with for a starting point. Had I not had shop and field experience, I may have failed. I am grateful this was not the case. But I certainly did have my times of looking like the hamster on the wheel and mistakes that were costly along the way. All of this could have been avoided if there was some place for me to turn and learn how to do things the right way from the beginning!
There is much to consider when weighing out your assets. They should always outweigh your liabilities! The value of training and professional development for truss/component design could be undermined if we see it in a traditional way:
- What is the cost of it?
- In what amount of time will my company recover (ROI) that money?
- Do I really need this?
- What are my competitors doing?
This is what you really should be asking:
- What is the cost of NOT training your staff? (Mistakes, backcharges, inefficiency)
- Is there an ROI on lost revenue? (Dissatisfied or lost customers/opportunities)
- How will you meet demand without competent, qualified staff? (Technical staff does not grow on trees)
- Are you your competitor, or your own entity? (Companies with a vision must act on that vision)
The real question then becomes: Can you afford not to train your staff to reach their potential?
There are also other factors you have to ponder:
- What part will your veteran designers play while working with trainees?
- Can your company carry this load internally?
- What percentage of productivity loss can be sustained?
- Has your company considered or measured how much in potential revenue that is lost?
- Is the sales team eager or reluctant to secure additional workload?
- Have you thought of the value of having an efficiently trained staff in the proper version of the software?
The tough questions are all that is left:
- When was the last time your company planned a training session? (Minimum of 10% of every designer’s time should be for growth)
- Is there a training protocol? (If you don’t think you have the time to write one, you have no idea how much this has already and will continue to cost you)
- Do you have every employee doing things the same way? (Making 5% on one and 10% on another just doesn’t make any sense)
- What is the morale like in the office? (Some folks may be afraid of training themselves out of a job)
- What is the engagement like in the office? (The mindset of “I am only doing this because I was told” will rub off on anyone learning or being taught anything due to minimal effort expended)
After thinking deeply on the questions above, management can be as radical as Kiyosaki: Are we getting any income of this right away? No? Then this action is leading to a passive.
And sure it could be expensive and with no warranty of returning your investment right away. But has your company considered or measured factual numbers? Simply put, it is impossible to measure what you don’t track! So if you are like most companies, you have no clue how much you are wasting in inefficiency each year. There is little balance.
What’s the solution?
At this point we are painting a picture of balance between “Value” and “Price”. What is the value of a well-trained employee? Does it outweigh the price? Or are you willing to repeatedly keep spending enormous amounts more, year after year, than if you had just made the investment to begin with?
With over a decade of experience, Gould Design, Inc. (GDI) can measure and point out these numbers for you. With a proven, detailed methodology, GDI can lead you to factual numbers, not someone’s best guess. This will allow you to see what you could have overlooked and measure part of the potential earnings you have not accessed yet because of a lack of properly trained staff. You will also have the exact numbers to decide how many trainees you can handle, for how long and where the boundaries are with performance measurement.
And most importantly: Reducing the amount of load to your veteran staff plays in developing others so that they can continue working and producing what your company needs to profitably thrive.
Using a series of assessments, GDI first measures a candidate in the following 12 categories:
- Basic math skills
- 3D skills & spatial recognition
- Plan reading ability
- Truss math
- Visualization ability
- Personality strengths
- Personality type
- Willingness to learn
- Ability to follow directions
- Decision making ability
- Detail comprehension
In a short period of time, with properly screened candidates, your company could be utilizing properly trained designers so you can have projects efficiently analyzed. This helps the Sales Staff (morale) and the Shop (engagement), reducing the response time to clients and making things easier in the shop (even preventing accidents).
Also, you can receive periodical reports of each trainee to be aware of their development, knowing the potential for each one on an individual basis. You will also know the limitations the moment the reach that “line in the sand” (boundaries) so you can establish a probable route of developing for each one and how they can help your business to grow.
What’s the value?
GDI can help you to put in balance the value and the costs associated on an individual basis. These proven-over-time results will be reported so decisions at your company can work on a timeline. In a short period, you will know the risks and the benefits for each particular case.
Information plus action neutralizes the fear that may be caused from past experience. Our goal is to research each potential candidate proactively so we can give you the most accurate prediction and a plan of action. Technology allows us to do it remotely so you won´t have unfamiliar faces walking around your facilities or disturbing your team.
As you know, technology has transformed the business of trusses and you probably have already taken advantage of it in your production facility. But have you done so in your design department? If the answer is no, then why not?
Are your technical people not the highest paid on staff? Why is it so easy to spend $300,000.00 on a piece of equipment, but not a fraction of that amount on an efficient employee? It just doesn’t make any sense. Maybe if you had 5 efficient designers, you would not need to hire 2 more! Those same 5 efficient designers would be capable of keeping that $300,000.00 on a piece of equipment running all day!
Communication about needs and wants is very simple, yet hard to grasp. All the planning in the world is meaningless without action. But you have heard this all before! What are you going to do about it? Why re-write the book on your own and invest from a standpoint of trial and error? Why not allow yourself to save the hassle and the expense and reach out to a proven method from a company that has already done that?
The facts are this: we get what we pay for. We become what we think about. We can’t measure what we don’t track. We can’t take inventory on something we don’t have or are not aware that we have. We cannot estimate value until we have a lock on price. We can’t improve efficiency unless we make time in our schedule and PLAN for it.
How much more are value are you willing to lose until you pay the price? Contact us today for a custom-made value versus price solution.
This article has helped you to think about the value of training. In which ways has training transformed your business? In which ways has it hurt your business? Please share your thoughts in the comments section.