GPI 275 – Ask “How Long” for all critical tasks, start measuring time and see profits rise.

Consider that nearly all jobs in your company have important tasks that must be done by certain deadlines or time frames.  Nearly all of the other duties assigned can be completed after those more important critical deadlines are met.  If you and the rest of your management staff think in these terms, you are sure to improve productivity and along with that, profits rise.

Ask “How Long” for your critical tasks to complete:

1. How long to complete billings? Instruct the person who prepares the company invoices to cut and mail (email, fax) them by noon the following business day (i.e. 10:00 a.m.  The next business day, 12 noon the next day, 3:00 p.m.  The next business day — you pick the time and what is feasible).  You want invoices in front of customers in a timely manner because most vendors extended credit will not start the clock until they receive a bill.  Speed it up.  Streamline the process.  The earlier most of these customers get their invoices, the faster you will be paid.  Establish a deadline for this critical task regardless of where the information comes (i.e. One shipping department, fifteen remote warehouses, three countries, fourteen states, etc.).  For this position, invoicing comes first.  All extraneous non-important tasks can be done later.  Do not make the mistake thinking that the right priorities will occur.  Most clerks see all tasks as equal until trained otherwise.  Review them now and ask what your employees to rank their priority to ensure they fully understand which are the most important.
2. How long to produce your product/perform your service? Determine and measure the time required to make, select and pickup material, feed it into a machine, produce one part, remove it, clean it and stack it on a pallet ready to ship to a customer (i.e. You substitute the direct labor or production task specific for your company).  It is not only critical to determine this time allowed, it is absolutely necessary to clearly state to your laborer what is expected; how much in what amount of time.  If you do not get a concurrence, your measurement is useless because he does not buy in.  Run test periods and dry runs.  Try various setups and ask for input to cut the time required.  Ensure the laborer is trained and the equipment is working as expected.
3. How long to answer the telephone? How long does it take before a customer can actually reach someone in your organization?  How long does it take to spend money in your firm?  How difficult is it?  Determine a standard and assign it to the receptionist and anyone else answering incoming calls.  Respond within three rings or five rings or use secondary backup receptionists if necessary; develop a telephone system with the ability to be answered at multiple desks during busy times.  If your firm develops a firm policy that clearly states calls will be answered within a determined time frame make sure the group knows to fill in when volume of calls is higher than normal.  Develop alternative logs in the event personnel are busy, away from their desk, out for the day or the call is from a new potential customer.  In other words, know who to contact when the first employee is out.  Write up these alternatives for each sales person and make that department update this alternative answer plan often.
4. How long to distribute the mail? How long does it take before company mail is gathered and distributed throughout the company?  Answer this by asking what is received by mail these days?  Are customers still sending checks directly to your firm?  If that is so, assign the mail to be opened, date stamped, sorted and distributed by 9:00 a.m.  (i.e. you pick the time for your own firm).  For manual checks, get a check scanner for your office (if it makes economic sense, monthly cost versus gas to go to the bank).
5. How long to ship an order? How long does it take to load one full size delivery truck, verify the pallet count, verify shrink-wrap, packing list details and other pertinent information?  You determine this, but set a time limit for that department every day.  Once you notice problems with heavy shipping days, you will train secondary people to assist when necessary to expedite loads when traffic is heavy.
6. How long to quote a customer? How long does it take to get a quote from your inside sales staff in front of the customer?  How long would you wait before you go somewhere else?  How long should it take?  It may depend upon the complexity of the request.  Regardless of your specific issues for your firm, publish a stated internal company goal such as these examples:  All quotes out in four hours, one business day, five business days, all quotes with firm pricing good for seven days, all written quotes with firm pricing good for thirty days, etc.  You pick the standard and then go with it.  You will not achieve it every day because you will find acceptable exceptions and you will build those into your model written on your company policy posted on the wall.  Choose a turnaround time for responding to customers, tell the world this policy and then proceed to measure yourself.  Once you start this self-evaluation process, you can only get better.  Customers will appreciate the fact you have considered this and are working to achieve better faster results for them, even if you are slightly late in the process.
7. How long to answer inquiries? (i.e. Calls, emails, text-messages) How long does it take you to get back with customers?  If someone calls your firm and leaves a message with your voicemail, your secretary, your manager, your assistant manager, how long should one wait for a return call?  Does it matter if the caller wants to place a $50,000 sales order?
8. How long to perform a service call? How long does it take to get a service man to your home or facility?  Does your firm give a promise time, time frame, and time estimate?  Do they stick with the plan and if not, do they notify the customer before that time frame lapses?
9. How long to respond to employee suggestions? How long does it take for the company to respond to employee suggestions or ideas?  Does your company even acknowledge the submission?  Does your company respond or tell the employee the idea was received and is being evaluated?  Is the employee thanked or recognized for his or her time for the feedback regardless of its importance?  Remember that not responding at all is actually destructive to the entire process of encouraging participation so, if your firm does not have the time to respond to ideas or suggestions, do not ask for them.
10. How long to respond to website inquiries? How long does it take for someone to get back with you when you send an inquiry through the internet?  Obviously, the longer it takes, the more likely that visitor will never visit again.  Do you know from any studies how long it requires to lose a customer for good?  The risk of not getting back with him is that he probably will remember very clearly the very poor response and tell a number of people who in turn will further ruin your credibility in the marketplace.  If you cannot respond to website inquiries quickly, do not offer that option.
11. How long to greet visitors in the lobby? How long does someone wait in the lobby or at your front door waiting for someone to respond, say, “Hello, May I help you?” Even if the receptionist greets the person and announces the visitor to an internal employee, do they have to wait very long for that meeting?  Does someone get back with them to let them know they have not been forgotten?  Is someone courteous to them?
12. How long to get a refund? How long does it take for a customer to get a refund?  How long to get it in cash?  Credit card?  Cashier’s check?  Is the refund policy posted up at customer service or written on your invoices or receipt?
13. How long to enter customer orders? How long does it take for a new order to be processed?  How long do you think it should take in order for your business to stay competitive?
14. How long to process customer payments/checks/cash? How long does it require for your cash application clerk to apply cash?  Same day received?  Two days?  Are your customers complaining?  Does the collection person making calls find most of the payments were already sent a week or two ago?  If this is the case, why has that person not spoken up and questioned the timely application of payments?
15. How long to find “Contact Us” on the company website? Once a visitor logs onto to your website, how long does it take to figure out how to call your company?  If a visitor cannot readily find your telephone number on your website, you should fire your programmer.  When visiting your website for the first time, anyone should find a telephone number or “Contact Us” within a few seconds; otherwise, someone is being overpaid.  When website visitors cannot figure out how to talk to you, they do not come back.
16. How long to load up the website homepage? How long should it take to load up the front page of your website?  Have you had any problems conveyed to you by your customers?  Have you had people test it for you to give you feedback?  Have you asked?  Did you wonder why you do not get many visitors?  Can it load up on desktop computers, but not mobile phones?  Have you had it tested?
17. How long to change screens on the company website? Once one has reached your website, how long does it take to go to another screen?  If this fails, the visitor will not wait; he will be like most of us and will leave quickly.
18. How long to correct wrong employee payroll checks? How long should I wait if I am employee and you did not pay me for all of my worked time last week?  What is the policy?  How long should I have to wait?  How am I treated when I work at your facility?  If you do not treat me fairly, do you think I may be more likely to overlook problems, steal product or steal time?  Do you think if you do not pay me fairly that I will be loyal to your firm?
19. How long to respond to customer complaints? How long does it take to get a response back from your firm when your product or service has failed?  If your firm fails at this, do you think the buyer will return the next time?
20. How long before one is greeted with a smile and offered assistance? How long do I have to be in your store before I get someone to greet me or offer me help?
21. How long after month end are financial statements issued? How long should management wait in order to get financial statements from your accounting department?  How relevant are they if it requires months versus a few days?  How likely is it I will be able to increase my borrowing with my bank if I am consistently late with financial statements?  How motivated are the managers on incentive programs if they have to wait months before finding out how much they earned for the month?  How much of a motivation is it not to know if the company is profitable or not?
22. How long to ship a customer order? How long after I order something do you ship it to me?  Is it the same day?  Is it the same week or within the month?  How long will I be in business if this is not taken critically?
23. How long to investigate shipment status and locations? How long does it take for an employee to locate your shipment when you call a company?  If it is due soon are they able to give you an answer while you wait on the telephone?  If not, you are more likely than not to reconsider using this company again.
24. How long to wait in the lobby? How long do you have to wait in the lobby to speak with someone?  The longer you wait, the more you wonder who is at fault here and who simply follows directions.  Your concept of this firm diminishes as time passes in the lobby.
25. How long to pay earned incentives? How long do your sales people have to wait to get paid incentives or bonuses earned for the benefit of the company?  The longer they wait, the less they are likely to wait over the long run and the less they are motivated to do their best for the company.  If they have brought new lucrative business to your firm, you need to reward that desired behavior as quickly as possible.  Try to pay bonuses monthly or even weekly or semi-monthly if possible.  Even though bonuses may be smaller when paid more frequently, sales personnel become rejuvenated when after slow periods new program time frames begin.  If they screw up the current month for example, encourage them to get started right away for the next program for the following month.
26. How long to notice a material decline in new sales orders? How long does it take to notice new sales orders are drying up?  The only way to know this is by measuring actual performance against an established sales forecast previously determined and stated by those responsible for procuring those orders.
27. How long to notice a lag in collection of outstanding customer receivables? How long does to take to notice nonpayment by a regularly paying customer?  If collection efforts are ongoing and weekly review of the aging occurs, this nonpayment status should be known quickly.

Measure critical tasks and the people who perform them.  All of these examples if measured show how well a company is run or how badly it may be neglected.  Establishing time limits for each of these important things and putting those quantitative answers into job descriptions and posting them on the wall for the group to see helps to speed things up.

Get your department to establish time limits to increase productivity.  No one wants to be the guy who caused a goal to fail.  No one wants to be remembered as ‘that guy who screwed up the forecast’.  Make decisions and force these departments to declare their turnaround times upfront and hold them to it.  Your firm will become more competitive and will generate happier customers.  This leads to higher sales, reduced costs and higher profits and that is not a bad idea.