FRIDAY @ NRA: The buzz arising from meetings and sidebar conversations so far has concentrated on the struggle everyone is facing to reduce spending as the economy decimates budgets and financial projections. Honestly, a lot of the rabble is coming from the “glass half empty” finance department, but in this case they may have it right. Every foodservice manufacturer executive I spoke to is experiencing higher costs in every category: raw materials, logistics, manufacturing, and energy; while sales projections and RFP offers slip lower. One company even confirmed that they had instituted a “travel ban” requiring employees --- even in sales --- to manage their areas via telephone and web-based meetings. This strikes me as backwards, since the typical travel budget pales in comparison to trade promotion spending. A cursory analysis of promotional spending will quickly identify programs that have been --- or project to be --- ineffective at creating lift or preventing competitive encroachment. Eliminating even 5% of this wasteful spending could impact your bottom line by nearly 1% of sales (direct and indirect costs indicate that fully allocated TPM spending can reach 20% of sales or more). That amount --- depending on your company's size --- could equal your entire field travel budget.
Managing in turbulent times is never easy, and identifying the proper levers to pull (or buttons to push) is the magic that separates the average from the exceptional company. When asked why he robbed banks, Sutton simply replied, "Because that's where the money is." So go to where the money is in your business, and don’t steal the tools your employees need to do their job --- just make sure they are using them correctly!
I'm feeling a lot of pressure right now, and it's not gas -- John Force, drag racing legend