10 components for success in business – part 6, and 7
6. Procurement Policy
Do you strategically source your inputs and stock? When you have a sound policy, you remain competitive in your market. Always avoid middleman in instances where you can buy direct from source. Avoid keeping stocks which will not move. Use the sales reports to determine what kind of products to stock. You need to setup authorization levels for procurement. You do not want to be suddenly shocked by huge invoices. This system should work closely with the budget tool. If it is not budgeted for, it will not be procured unless by special arrangement with leadership. This policy should allow for regular reporting on stock and procurement activity. That way you make informed decisions ahead of time.
7. Communication & Reporting Strategy
Internal and external communication structures can easily become the resistors for smooth flow of information and hence slowing down of decisions that need to be made timeously. As the CEO, or head of department, you need to take time to communicate vision and spell out the goals and objectives. Regular meetings with team members keeps you informed of issues as they arise not after incubation. You are able to decide on the way forward reducing any impact to the organization. In all the systems mentioned, be it financial, HR etc. there is a regular generation of reports. This tool spells out deadlines and how often reports should come out. Who is privy to which reports? A system is only good to the level to which it can give feedback to leaders for them to make informed decisions.
… to be continued next week.
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