Cutting the Fat – Making Better Business Decisions
Tags: ERP  
19/08/2011 12:00 AM

As a business owner at any level, you're inundated almost daily with a list of decisions as long as your arm about whether or not to spend money or something else. There a two common mistakes made in this area by business owners, both of which can be detrimental to the overall success of the operation.

The first is to deliberate for too long over each expenditure, weighing up each decision in-depth and losing valuable time in the meantime. While this ensures thoroughness, it is not a sustainable way to run a business, and regardless of the outcome of the decision, too much time is wasted on making it.

The second common mistake is to simply sign off without consideration on expenses, without acknowledging the fact that money saved is money earned. This is reckless business practice and can result in overspending and waste. But how to make decisions quickly and decisively without making the wrong ones? From delegating to  ERP Software, we've got a few tips on how to trim the fat!

Delegate
A good manager or boss doesn't just take all the responsibility upon himself and lead as a one-man show. The most successful businessmen are skilled at delegating, and choose key people to offload specific responsibilities to. This comes back to strengths-based management, and learning to work to your employees' capabilities. When new opportunities present themselves, delegate the research component of the decision to someone else and have them report their findings back to you, complete with an analysis of the budget implications. Your time is the most valuable to the company since you probably get paid the most, so don't waste it doing unnecessary research!

Increase Communication
In many organisations, the individual sectors work incredibly well within their teams, but communication often falls flat between the sectors themselves, and between the sectors and the managing director. Whether it means creating more managerial roles or having structured reporting protocols in place, increasing the amount you know about individual sectors will make it a lot easier to cut the fat and make confident decisions.

Software
There is plenty of Business Software that can help make these things a whole lot easier. In terms of communication and data-sharing between the sectors. ERP software is a brilliant tool that can save your organisation time and money, and make it possible for you to contextualise decisions with the click of a button. There are also several great budget programs that can help accounting staff come up with detailed budget analyses which will help you make clever financial decisions in your role as a manager.

It is not easy being the boss when the decisions you make have a ripple-through effect on the entire organisation. Rather than being paralysed by the weight of this responsibility however, a good leader puts in place protocols which make it easier for them to lead with confidence. Which will you be?

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