Whether you have acquired a company to run as owner/manager or to merge with other businesses, there are important management issues that should be addressed.
- 90 Day Plan – establish an actionable plan for your first 90 days and make sure you implement all of the actions. Ensure everyone knows the “what, why, when and who” for every aspect of your action plan.
- Act Decisively – if any changes need to be made, such as to staff responsibilities, then make those decisions quickly. Nothing will harm morale faster than rumours amongst staff which are caused by your indecision.
- Make Hard Decisions – don’t try to be the nice new owner. Some decisions are hard (on you or other people). That’s no reason for not making those decisions. Your business will suffer if you take the easy way out.
- Synergies – if you haven’t already done so, identify what synergies exist between this and your other businesses. Now implement easily actionable strategies to turn those synergies into extra profits.
- Measure – all important actions that impact on costs and sales. You can then identify new targets to improve your profits. And if some staff tell you their actions can not be measured (marketing people are notorious for this, I know because I’m a marketing person), then you need to consider whether their activities are even necessary. It may be they’re too focused on brand building advertising rather than sales targeted activities. Remember, if you can’t measure it, you can’t manage it!
- Golden Handcuffs – identify the key managers and staff that you do not want to lose. Offer them appropriate bonuses (shares, share options and cash) based on a combination of achieving performance targets and remaining with you for the next 1,2 or 3 years.
- Resist Immediate Pay Rises – unless they are clearly justified do not be held to ransom by your staff. Golden Handcuffs as mentioned above are a more successful option.
- Communicate – clearly with everyone. In particular keep in contact with your customers, let them know the planned benefits of your ownership. And then deliver those benefits – then you can probably justify some price increases. Ensure you meet regularly with your staff, let them know what you’re doing and why. And then listen to their suggestions.
- Yet More Action Plans – now start preparing your next 12 months action plans. Have a look at our Profit Improvement page for ideas that you can target.
- Share The Improvements – allied to a good Profit Improvement Plan you should consider sharing the increased profits with your staff. To motivate and encourage stellar performance, the share of increased profits should be paid every 3 months. To avoid arguments amongst staff, sharing should be equal for all employees. This also links in with establishing multi-disciplinary teams to review action plans – this brings additional expertise to solve any problems and to identify new opportunities.
- Don’t Be Afraid To Use External Expertise – outside consultants with experience across different industries can be invaluable in assisting you with all of your post-acquisition management challenges. Pay them well and treat them as a valued employee and the results can the startling.
Call Martin Dabb ph; 0458 290 100 (Perth) or Email Me to discuss any issues or questions related to successfully managing your new business acquisition in Perth.