Processes, Administration and Service
Do You Recognize Any of These Situations in Your Company? The following
situations are common in the administration and support areas of many
The processing of orders is a major bottleneck in keeping our customers happy.
We always study our past performance data when we make decisions, but we must
be doing something wrong because our decisions are often found to be wrong in
the long run.
In our company, all types of paperwork weave through a path of delays,
approvals and frustrations.
Here are some examples of how Booth Associates can help.
Dealing with Variation
The following is an example of how problems in the administration and support
areas can hurt your company.
The executives in a sales organization were concerned with low morale among
their sales staff. After interviewing the sales people, the administrators
found that many of their sales staff were frustrated when their efforts were
not rewarded consistently with sales. During months when they worked the
hardest, they often had lower sales than in other months. Sometimes, when they
had not worked hard, their sales were high. If a sales person had a low-sales
month, they were brought into the sales manager’s office where they were told
that they needed to work harder. Many times they were confused because they had
worked very hard that month. On other occasions, when they had not worked
particularly hard, they had high sales and were singled out to be praised among
their colleagues. On these months, the praise only made them fear the next
month when they might not do as well as in this month. Then they would be
chastised again for poor work. Frustration was the name of the game, and morale
was very low. These sales people were being victimized by management’s failure
to understand variation and how to deal with it realistically. Management needs
to learn how to respond to variation. When variation is dealt with correctly,
employees feel better about their work, their performance improves, and greater
The following is an example of how Booth Associates can save you money in the
administration and support areas of your company.
A company processed about 9,800 purchase orders per month. There were 30 clerks
performing this function, and each one should be able to process between 20 and
25 purchase orders per day. It should be possible to process between 13,200 and
16,500 orders per month. Yet, with only 9,800 orders coming in, they were
getting further behind each day. About twice each month, some of the clerks
would have to come in on weekends (at time-and-a-half) to keep from getting
completely bogged down. Orders took almost 5 weeks to be processed. Customers
were unhappy and some were moving their business to competitors. The process by
which the orders moved through the company was in trouble. An analysis of the
order-completion process revealed the root problems which were causing the
delays. The process was revised and the order-processing time was reduced from
almost 5 weeks to only 7 working days. In addition, the number of clerks was
reduced from 30 to only 24. The savings in salary alone is over $130,000 the
first year. Customers began expressing appreciation for the prompt
service they received.
How Booth Associates Can Help
If you recognize any of these or have other problems in your company, we can
help you. We have helped many companies improve their bottom line, and we’ll do
the same for you. Please see our list of services
and contact us.
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