| "Business is about people, not just numbers." | | | | management team put into placerun by bean counters. |
| - Bryce's Law | | | | After studying sales figures, management founda |
| INTRODUCTION | | | | salesman who wasn't making his quota and, |
| Nope, its not the lawyers; its the "bean counters" that | | | | consequently, instructed myfriend to terminate his |
| are ruining business. Let megive you an example, I | | | | employment. My friend knew the salesman inquestion |
| know of a large machine-tool operation in the | | | | and realized he was experiencing some personal |
| Midwestwho used to be heralded for producing quality | | | | problems. Afterconsiderable discussion with corporate |
| products. To this end, the companyestablished an | | | | management, he convinced themto let him (the Sales |
| in-house school who taught their machinists how to | | | | Manager) work with the salesman a while longerto |
| buildproducts, not just any old way, the company's | | | | see if he could help him. He pointed out to |
| way. The school was led by thesenior craftsmen of | | | | management, the alternativewas to start the laborious |
| the business who took pride in their workmanship and | | | | and costly process of recruiting and teachinga |
| passedthis on to the new employees. When an | | | | replacement. Management acquiesced and granted |
| employee graduated from the school, amachinest not | | | | the salesman astay of execution. Over the next few |
| only knew his job, but took pride in his work and | | | | weeks, the Sales Manager was ableto work with the |
| became loyal to thecompany due to its reputation. | | | | salesman, helped him overcome his personal |
| Even if an employee dropped out and wentelsewhere, | | | | problemsand rebuilt his confidence. Since then, the |
| he would always recommend his former company's | | | | salesman has gotten back ontrack and has been |
| productsbecause he knew they were built with quality. | | | | exceeding quota ever since. |
| This school went on for a number ofyears and | | | | Bean counters do not understand or appreciate the |
| became a part of the corporate culture. However, in | | | | true business of acompany. They make knee-jerk |
| the 1980's the companyhired a team of MBA's to look | | | | reactions based strictly on numbers, noton human |
| over their operations and make recommendationsfor | | | | intuition or social interaction. It is no small wonder the |
| improvement. You must remember, this was a time | | | | corporateworld has become dehumanizing. I know of a |
| when cost cutting was thenorm. After looking over the | | | | medium sized semiconductorbusiness in the Southeast |
| financial statements of the business, the | | | | who also experienced a similar phenomenon. |
| managementconsultants concluded the school | | | | Thecompany was founded by a man with little formal |
| represented a costly overhead andconvinced the | | | | education, but a lot of "streetsmarts." He took a |
| company to close it down. | | | | hands-on approach to the startup of the company |
| Shortly after the school's closure, the company started | | | | whichgrew in leaps and bounds. As the company |
| to experience a dropin morale, absenteeism and | | | | settled into maturity, the founderbegan to slow down |
| tardiness began to rise, and craftsmanshipbegan to | | | | and brought in a new management team to take over |
| deteriorate. Product quality dropped significantly and | | | | thereins. His new management team had some pretty |
| the companybegan to lose customers, so much so, | | | | slick business schoolcredentials but, inevitably, they |
| they eventually sold off theirmachine-tool operations | | | | were nothing more than bean counters. Undertheir |
| and went into a totally new line of business. Keepin | | | | watch, corporate growth was arrested and the |
| mind, prior to this the company was a leader in the | | | | company's stockdiminished radically. Today, a |
| machine-tool industryand generated substantial profits | | | | company that was at one time a robustand thriving |
| from it. | | | | business with loyal customers and dedicated |
| Obviously this story isn't unique as we have witnessed | | | | employees isa mere shadow of its old self. |
| several such changesin the corporate landscape during | | | | Conducting business is more about our interpersonal |
| the 1980's and 1990's. The point is,the bean counters | | | | relations with customers, vendors and employees, than |
| have taken charge of business which has | | | | it is about watching dials and gauges. As the famed |
| triggeredsweeping changes in how we deal with our | | | | W. Edwards Deming once said: |
| customers, our vendors, andour employees. | | | | "Profit in business comes from repeat customers, |
| LOSING THE PERSONAL TOUCH | | | | customers that boastabout your project or service, |
| Under the bean counter approach to business, | | | | and that bring friends with them." |
| numbers are all thatmatter. Of course, paying attention | | | | Keep in mind, Deming understood the need for |
| to the bottom-line is alwaysimportant, but this should | | | | statistical analysis andwatching the bottom-line, but he |
| not result in a callous way of operatinga business. To | | | | also realized they were nothing morethan the dials and |
| me, studying the numbers is analogous to watching | | | | gauges of the business. |
| thedials and gauges of a machine. It is like watching the | | | | CONCLUSION |
| speedometerof an automobile. But if I observe an | | | | Under the bean counter approach we have lost the |
| emergency vehicle approaching orsee a drunk driver | | | | personal touch forconducting business. Companies |
| nearby, I am going to ignore the gauge and do what | | | | have become cold and calculating,certainly not the |
| isproper. I am going to make a human decision and do | | | | types of businesses we want to work for or with. |
| what is best formy passengers and myself, as well as | | | | Alwaysremember that bean counters believe |
| the other surrounding vehicles. If | | | | conducting business is simplymanipulating numbers, not |
| I only did what the dials and gauges told me, I would | | | | in building products or servicing customers. Yet,for |
| probably harmothers. | | | | some unfathomable reason, we have put them on a |
| The bean counter approach to business represents a | | | | pedestal and expectthem to competently guide our |
| very mechanicalway of operating. Let me give you an | | | | companies. But the only thing I see themguiding is our |
| illustration. I have a friend herein Florida who is the state | | | | foreign competitors who take over our market share. |
| sales manager for a home health business | | | | To paraphrase William Shakespeare, "The first thing |
| (a lucrative business for a retirement state like Florida). | | | | we do, let'skill all the bean counters. |
| The companywas recently purchased and a new | | | | |