“If you could get all the people in an organization rowing in the same direction, you could dominate any industry, in any market, against any competition, at any time.”
That is a bold statement…. or is it? I’ve had the luxury of working with numerous companies both in and out of our industry and can tell you that the universal challenge is pulling your team together, sharing the vision, and executing on the plan. We all know the old saying, “Sounds easy, does hard.” Well, it’s alive and kicking! If you were to look at my favorite performance bell curve for the Kitchen and Bath Industry, what would the Dealers look like on that far left side? (The Top Dogs) They wouldn’t be there because of some cabinet that no one else offers, or a team of installers that magically fly around the Kitchen and use their wands to flawlessly install your project. It really just comes down to the fact that some companies are just a lot better on the execution of the plan.
You would be amazed at the gap in productivity (GMPP) between the great companies and the ones that are just trying to keep the balls in the air. (As much as 5 times the gross margin per person) That is insane! The funny thing about this comparison is: who do you think works more hours? Yup! The ones on the lower end of the spectrum. Hard to get your head around that? Chaos is very time consuming and stressful…. just like me trying to find a number I wrote down on the smallest piece of paper that exists… that’s a real show! Ok let’s just cut to the chase about why the difference in results are so vast. It’s not the magic bullet but something that is just as simple as: Great Leadership, a strong team, clear vision, and a culture built to kick some serious arse! I said it was simple, I didn’t say it was easy.
Here is another simple equation: High Supply & Low Demand. The balance between the two will continue to become more lopsided as we move into 2023. Think John Morgan (supply) sitting on one end of a seesaw and me (demand) sitting on the other end… that scenario could send John flying into orbit… It’s not going to be pretty but here it comes!
Dealers that are hungry for market share need to start asking themselves some serious questions, like…. How am I going to get from Point A to Point B? These might help get you started.
- What is your plan for 2023?
A. Cut your expenses to reflect lower sales?
B. Try to take market share by becoming a better company?
- If your answer was B or C, do you know what “a better company means” Hint- Improved KPIs.
- As a leader, are you in a position to spend time to drive new initiatives forward?
- Is your team and culture set up to embrace change with enthusiasm and drive it?
- Do you currently have metrics or Key Performance Indicators in place so that you can measure improvements? (if so, you are one of the few)
The time to build your written plan and goals is now. You may not think so because you still have sales in the pipeline, but rest assured, the flow will continue to slow…
Initiatives always take longer than you think, so starting “tomorrow” is not a good answer. Your company needs a fresh start, which means you need a fresh set of eyes. Don’t try to do this alone. The best leaders will drop kick their egos and find peers and mentors to help them. Make sure they know what they are doing, or you will get stuck in the mud. We are always here to help but at least find something or someone that you feel really good about.
I will leave you with this: “Movement starts with Mindset” Now get real and get started!
Thanks, and be sure to check out our KABS software when you get a chance. It could be a big step in the right direction! thad
KABS – The best software for managing you Kitchen & Bath business!
(2020 Design Software Integration, QuickBooks Online Integration)
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