Three are the large departments or areas of a company: production, commercial and administrative/financial.
Of course, there are other departments, but they are invariably linked to the top three. The greater the integration between them, the better the company’s performance. That is not the case most of the time. This deficiency is noted, when an economic and financial diagnosis is made, or the annual budget. The beginning of this work is done through a series of interviews, which precede the taking of data for the preparation of calculations, conclusions and opinions.
The first respondent is the chief executive, or the “Owner,” as they love being called the shareholders of small and medium-sized businesses. They are often exaggerated in their expositions, pointing out huge productive potentials, major buyers markets, and that solutions to their companies’ problems are extremely simple. Just money!
There are also those who say they have not been aware of the problems, with the famous phrase “I DID NOT KNOW!” The production manager, whether he is director, manager or other designee, always has the excuse of not having the productive capacity that other department and people affirm, always lacking raw material, not having the necessary staff, and that the commercial does not program the orders, however its product is of excellent quality.
The commercial meanwhile, does not stop having his speech on the tip of the tongue, which is, “we are burned in the market”, the product is bad, contrary to what the responsible for the production says; there is a long delay in deliveries; the price is very high compared to competitors. But the financier, accompanied by the administrative, blames all other departments, the banks, the shareholders who “bleed” the company through disproportionate financial withdrawals, etc. etc. etc.
Have you seen this movie? We see here on C&S we see daily. What to do then?
Plan each department according to reality, first separately, and then consolidate in order to have a broad view of the entire business, involving informed, trained and integrated managers.
Planning should be constantly analyzed through monthly controller reviews and daily performance indicators, with the involvement of business leaders, without the intention of protecting their areas of activity, “fiefs”, but rather seeking detailed analysis for the problem solutions encountered, and elimination of risks.
Therefore, communication, understanding among departments, personal detachment, and the pursuit of the common good, which is the good result, the profit, must be the goals of the whole team.