Tuesday, June 15, 2010

Managing the Differences Between Operations & Sales

After 30+ years in the Print business, there are certain recurring themes/problems/opportunities that constantly arise. One of the most prominent is what often is a battle between Sales & Operations regarding how incoming business should be handled.

Should we simply be grateful for anything we’re able to sell, or should we be rather conservative in what we accept? In a nutshell, are we Operations or Sales driven? And, by the way, what about the customer?

Let’s first look at some of the issues:
1) Pricing and profitability
2) Requested turnaround time/delivery
3) Production capabilities
a) Expertise b) Equipment
4) Capacity
5) Major customer needs, dynamics, & influences on how we do business
6) Last minute changes from customer
a) Specifications such as substrates or special effects
b) Content c) Artwork
d) Quantity, up or down e) Bindery
f) Shipping instructions g) Expedited delivery

When any one of these (let alone multiple occurrences) take place, depending on current workload, staffing, financial condition, etc., stress is created between Operations, Sales, and often Finance. How should this be resolved is the question.

I have seen it all, from Sales dominating, pushing anything and everything in, to Operations and/or Finance being so restrictive that significant volume is lost. One blames the other, and a lack of accountability results. High levels of stress occur, and nobody wins, including the customer.

Let’s examine the problems created before we look for solutions.

When Sales is undisciplined, soliciting or even accepting jobs not suitable or profitable for the company, a sacred thing called throughput is damaged. So is profitability. Operations is asked to produce a job without the best tools to do so. Often times delivery is compromised due to the extra effort Operations puts into production.

When Operations and/or Finance, with their procedures and detail orientation, are inflexible in what is accepted, volume and opportunities for growth are lost. Sales feels demotivated and inadequate when they’re unable to meet their goals.

How should these issues be resolved? As usual, my contention is that the answer lies within.

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