Tag Archives: resources.

Where is the Money?

“Where’s the money?” I asked.

Luis looked at me and squinted. “What do you mean, where’s the money?”

“Look, you asked me to come here and help you straighten out this mess. Where’s the money?” I repeated.

“That’s the problem, there isn’t any money,” Luis replied.

“Yes, there is, there always is. Luis, the first resource a manager has to manage is capital. But before you can manage it, you have to find out where it is. Sometimes you think you know where it should be, but if that’s not where it is, you can’t manage it.

Sometimes your capital is tied up in a machine. Sometimes your capital is tied up in unbilled work in process. Sometimes your capital is tied up in Accounts Receivable. Once you find out where your capital is, only then can you manage it. So, where’s the money?”

A raw nerve had been struck. Luis shuffled some papers on his desk. “It’s here,” he said, pointing to the third column in his AR aging report. “It’s over 60.”

“Well, now we know where it is, we can manage it.”

Missing Targets

“We are still missing our targets,” Byron said, shaking his head. “My team just doesn’t seem to be able to do what is necessary. We produce enough in volume, but our reject rate is ten percent.”

“What are you going to do?” I asked.

“I don’t know. We have been over and over this from the beginning. I even tried a stern lecture.”

“Are they doing their best?” I prompted.

“Yes, I believe they are doing their best.”

“They are doing their best, with full commitment?” I pressed.

“Yes,” Byron nodded.

“Then, you have to look in the mirror. You picked the team. You provided the training. You provided the tools for the team to use. You provided the materials, the process, the work instructions. You provided the inspection methods. You control all the resources around the work. You are accountable for the ten percent reject rate.”