i n 1989, george carson began making cabinets for friends in his basement
DESCRIPTION
Riverside Manufacturing. I n 1989, George Carson began making cabinets for friends in his basement. H is costs were low. So were his prices. There was no overhead . W ord spread. Business flooded in . G eorge dropped his day job to make Riverside Manufacturing a real business. - PowerPoint PPT PresentationTRANSCRIPT
In 1989, George Carson began making cabinets for friends in his basement.
His costs were low.So were his prices. There was no overhead.
Word spread. Business flooded in.
George dropped his day job to make Riverside Manufacturing a real business.
He hired a helper and moved to rented space.
George had a micro business!
Riverside Manufacturing
The employees:•Produced & installed the cabinets•Made sales calls•Resolved customer issues•Shipped product•Handled administrative tasks
Overhead remained low – there were no managers.
“We have good people. We just get it done.”-George Carson
Before George knew it, Riverside Manufacturing grew to 40 employees!
Riverside Manufacturing
George was a “hands on” owner. He:• Made every important decision.• Managed all employees.• Knew the intricate details of the business.• Didn’t need metrics, reports or documented processes.
But, with all the work, George was stretched thin.
Riverside Manufacturing
Vacations were scarce and time off was at a premium.
George worked 75 hours per week and didn’t see much of his family.
Worse, business began to stagnate:
George was at a loss. What happened to his growing business?
• Sales growth stopped• Profits evaporated• The shop and inventory became unorganized• Work was always behind• The lack of processes led to constant fire drills• There were never enough hours in the day or days in the week!
Riverside Manufacturing
Riverside was growing.Profits were good.Then…Things began to go wrong.George wouldn’t let go.He was drowning.He couldn’t keep up with the work.The business was suffering.
Without knowing it, George was the constraint to growth!
What Happened?
What we learned …
Micro Business
Do the primary workMake tactical decisions
Develop strategy
What we learned …
Small Business
Do the primary workMake tactical decisions
Develop strategyGet the right workers in the right jobs
Manage the workers
What we learned …
Midsize Business
Make tactical decisionsDevelop strategyGet the right workers in the right jobsManage the workers
Get the right managers
Documented processRobust metrics
