From Greg's Head

Note: Running most Fridays in FromGregsHead.com, this is a continuing series of budgeting tips brought to you by Ventana Research and PKF Texas. These run Saturday mornings during the BusinessMaker’s Radio Show on SuperTalk 97.5. Audio files can be found on the Entrepreneur's Playbook page of the PKF Texas website.

The electronic spreadsheet was a breakthrough because it automated the most time consuming part of manual budgeting and eliminated errors caused by purely arithmetic processes. In theory, spreadsheets should allow organizations to collect detailed information from every individual with budget authority and roll it up into a consolidated view.

In reality, two decades of results has shown that numerous issues routinely occur making it difficult to achieve ideal results. Common problems include:

• Broken links or formulas
• Consolidation errors
• Using the wrong data
• Using the wrong/incorrect formula

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I want to give you all an update on some Dynamics NAV happenings. Back in August, PKF Texas hosted the Houston Dynamics NAV User Group Steering Committee.

The steering committee consists of me, Roger Oliver, a Navision developer at VeriCenter, Inc., Ray Boone, a project manager at Texas Medical Center, and Robert Wolfram, the CFO of Pileco, Inc. 

The user group was formed last year to provide a network for Houston Dynamics NAV users to discuss issues such as training, product add-ons, new features, and best practices.

We discussed various programs Microsoft offers specifically for Dynamics NAV partners. There will be a conference in Atlanta at the end of October where Dynamics NAV 5.0 will be previewed. I’ll give you updates on what I learn at the conference in early November.

Because the Jet Reports training in July was so successful, we discussed how we can implement and offer new training sessions and programs to the users in Houston.

Based on the overwhelmingly positive feedback from the participants of the Jet Reports training, we scheduled another training session to be held at the PKF Texas office, October 17-19. 

There are only 4 spots left and they’re filling fast. Contact Jim Batson for pricing, registration and more details. 

I will be posting future announcements about training and programs right here in my blog.   

I am very encouraged by the direction our group is taking. We have a committed steering committee and a great network of Dynamics NAV users here in Houston. Please do not hesitate to contact me and let me know what you would like to see the user group offer.

The next users group meeting is tentatively scheduled for mid-November. Keep an eye out for more announcements closer to November.

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What is your opinion on the use of widgets?

From Weatherbug to the new Sports Illustrated widget, mySI, which downloads sports scores and photos directly to your desktop, they seem to be cropping up all over cyberspace.

There are literally hundreds of these add-ons we can install and use on our computers to make our lives “easier.” Most are free and can be used by anyone. With so many to choose from can you have too many? Most likely yes. When do they stop being useful and merely become an annoyance?

My kids have widgets on their Myspace pages. Music, photos, countdowns, the list goes on. These widgets help them to “personalize” their small slice of cyberspace. 

Do the widgets you have make your life easier? Is it worth it to have content “conveniently” delivered directly to your desktop, or are we making ourselves too accessible to potential hackers?

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Note: Running most Fridays in FromGregsHead.com, this is a continuing series of inventory control tips by Jon Schreibfeder. These run Saturday mornings during the BusinessMaker’s Radio Show on Supertalk 97.5. Audio files can be found on the Entrepreneur's Playbook page of the PKF Texas website.

Separate your “stock” from your “stuff”.

When you stock material you are making a commitment. A commitment that an item will be available in reasonable quantities for immediate shipment or delivery to customers. Most distributors’ warehouses are filled with two things: “stock” and “stuff.” Stock is the material you intend to have in the warehouse. These are the items that you anticipate your customers will want. Stuff is everything else.  You have got to separate the stock from the stuff in order to have effective inventory management . Our goal is to liquidate the stuff and arrange the stock items in the best way to facilitate filling customer orders.

To determine which products you should stock, we suggest you sort the items in a warehouse based on each product’s “annual hits.”

Annual hits represents the number of times each product was ordered by customers, transferred or used in an assembly during the past 12 months, regardless of quantity. Why do we rank products based on hits, instead of the total quantity or material value ordered?

Annual hits more fairly represent that actual expectations of your customers and not the hoped for, or budgeted sales of your sales and marketing personnel.  Track items based upon the number of annual hits and compare this to the quantities ordered.  Once you start eliminating products with few annual hits your own the way to improving your cash flow and achieving effective inventory management.

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Congratulations to all those who entered this year’s FastTech 50 awards. The competition was fierce for the top 50 spots.

The winners have been chosen and will be notified shortly. 

The awards will be handed out and the order of the list will be revealed at a luncheon on November 3, 2006 at the Hilton of the Americas in downtown Houston. 

Stay tuned for more information closer to November 3. Once again, congratulations to the winners! 

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Note: Running most Fridays in FromGregsHead.com, this is a continuing series of budgeting tips brought to you by Ventana Research and PKF Texas. These run Saturday mornings during the BusinessMaker’s Radio Show on FM Newschannel 97.5. Audio files can be found on the Entrepreneur's Playbook page of the PKF Texas website.

Many executives at mid-size companies feel trapped in the middle, bigger but less agile as an organization that they were previously, but smaller and without the resources of large organizations.

By budgeting and planning more effectively, mid-size companies can recapture the agility that they had as a smaller organization and overcome the advantage of their larger competitors.

Agility is as much about seizing opportunities as reacting to disappointments. When markets are hot, companies that can decide to apply more resources sooner are more successful than those who wait. During downturns companies that trim spending sooner do well, but those that understand where best to cut resources do even better.

Agility is one of the most important reasons small companies are able to compete effectively against giant corporations that have far more resources. People associate survival of the fittest with Darwin. However, what Darwin actually wrote is “It is not the strongest of the species that survives, nor the most intelligent…it’s the one most adaptable to change.”

Agility is knowing the right answer sooner, not later.

Agility is being able to make the right decision sooner, not later.

Agility is being able to implement the action plan in a concerted effort sooner, not later.

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In the September issue of Business 2.0, there is an article called, “The 20 Smartest Companies to Start Now.” One particular idea caught my eye. Labeled as, “The Ultimate iDrive,” it is an in-dash computer with a keyboard built into the steering wheel and a full screen heads-up display projected on the windshield.

Definitely an interesting concept. Imagine on your morning drive to work being able to check and write e-mails without removing your hands from the steering wheel. The screen would appear to float 15 feet in front of the vehicle, so your eyes can easily focus between the screen and the traffic ahead.

This type of technology was apparently developed 30 years ago for fighter pilots so they didn’t have to take their eyes off the sky.   

There are obvious safety issues, namely, if we can’t handle talking on the phone in the car, how will we handle writing 15 e-mails on the morning drive? 

What would be really useful is if you could float the screen to the backseat, so the kids could be engaged on the drive to and from school. Though I can hear it now, “Dad, I didn’t finish my history paper last night. Can we take your car? Mom’s doesn’t have the computer.”

Do we need this added level of accessibility in our cars? Probably not. Is it fun to think of the possibilities this technology can provide us? Definitely. 

What issues do you see with this kind of technology? Do you think this will help or hinder our connectivity? We’re closer to the era of the Jetsons than we think.

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I want to say congratulations to VeriCenter, DataCert, The Merrick Group, Gimmal Group, and RigNet for their inclusion on Inc. Magazine’s 2006 Inc. 500 list. 

Similarly to the FastTech 50 and the Aggie 100, the Inc. 500 list recognizes the top 500 privately held, independent companies with the greatest revenue growth from 2001 to 2005.

Overall, Texas had 32 firms listed with 10 of those firms right here in the Houston area. Looks like the Fast Tech 50 is doing a great job in recognizing some of the Houston area’s most successful companies!

The article accompanying the list states:

            “It is the story of how entrepreneurship has energized the economy and captured the public’s imagination in the late 20^th and early 21^st centuries”

I wholeheartedly agree with the author of the article. These lists are important because they show the entrepreneurial spirit is alive and well both here in Houston and across the country. You don’t have to be part of a huge mega-corporation to for your business to be a player in the global marketplace. 

Does your company pay attention to these lists? Do they help you to set goals for your company’s growth? If you have appeared on any of these lists, has it had a positive impact on your company?

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Note: Running most Fridays in FromGregsHead.com, is a continuing series of tips brought to you by Greg Price. These run Saturday mornings during the BusinessMaker’s Radio Show on Supertalk 97.5. Audio files can be found on the Entrepreneur's Playbook page of the PKF Texas website.

Attracting and retaining talent for your company roster is one of the hottest topics in boardrooms across the country. In order to successfully compete for quality talent, companies need to take the steps to set themselves apart from the fierce competition in today’s crowded marketplace.

Participating in the Houston Business Journal’s Best Places To Work program is a proven method for setting yourself apart. It demonstrates to the marketplace a commitment is being made to emphasize and nurture a positive corporate culture, and serves as a morale booster for firm recruitment and retention.

 Potential talent along with prospective clients want to align themselves with companies on the Best Places To Work list. What attracts and retains talent will ultimately attract and retain clients as well.

The champions who make Best Places To Work a reality, are the company’s employees – not the media or public. There is no better advocate for your company than you own employees!

The Houston Business Journal’s 2006 Best Places to Work awards ceremony is scheduled for Oct 12 at the Hyatt Regency Downtown. If you want to know how your company can benefit from such an award, sign up several of your key employees to attend this event.  Visit houstonbusinessjournal.com for event details.

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I read an interesting article last week in the Houston Chronicle about what happens to information stored on your phone after you “delete” it. 

Apparently, despite following the instructions in your phone’s manual, if you delete content from your phone it may not really be gone. 

The next person to use your phone (if you sell it or return it to your carrier to be refurbished) would be able to, if they had the desire and know how, to retrieve any information you thought was deleted.

The alarming thing is, this also applies to computers. Think of all the personal information stored on just your home computers. Bank account information, passwords, social security information, the list is endless. 

My wife and daughter recently sent their old phones back to Cingular to be refurbished and resold. After reading this article, I’m not so sure that was a good idea. 

There are several firms who can, for a fee of course, truly erase and reset your phone or computer so it is empty for the next user. While that seems to be worth the time and money, I kind of like the author’s suggestion of running over my old phone with a truck.

What do you do with your old phones and computers? Is it worth the price to have your phone completely erased, or would you just run over it with a truck?

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A few weeks ago I wrote about Katy Tanner in London and how she was dismissed from her job via text message. It seems like bad taste has hopped the pond and is in our own backyard. 

RadioShack, based in Fort Worth, recently decided to let almost 400 employees know they were dismissed, as part of planned job cuts, by e-mail.

Where is the personal touch? What has happened to the proverbial pink slip on your desk?

The spokeswoman for RadioShack, Kay Johnson, said the employees were told prior to the dismissals that they would be carried out electronically. She went on to say, “It was important to notify people as quickly as possible.”

Click here to see the original story from abc13.com.

Are we so concerned with speed and efficiency that we lose sight of how important it is to communicate on a personal level? 

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Note: Running most Fridays in FromGregsHead.com, this is a continuing series of inventory control tips by Jon Schreibfeder. These run Saturday mornings during the BusinessMaker’s Radio Show on FM Newschannel 97.5. Audio files can be found on the Entrepreneur's Playbook page of the PKF Texas website.

How accurate are your inventory stock balances?

Accurate Stock Balances Are Needed for Success
– No computer system will replenish inventory with the right quantity of the right item at the right time in the right location if the quantity in the computer system does not agree with the quantity physically in stock.

Maintaining Stock Level Accuracy is Difficult
– Not all material related transactions are properly recorded
– Material is put away incorrectly
– Damaged material is mixed with good stock
– There is a lack of warehouse security

A lot of distributors try to make up for stock level inaccuracy with more sophisticated computer software.  Every Employee Must Know the Cost of Bad Inventory Mgmt.
– Inventory is valuable 
– Paychecks result from the sale of inventory
– If inventory is lost, stolen or destroyed, it must be paid for with net profits
– Management must lead by example

Assuming a 4% net profit, it takes $2,500 in new sales to make up for a $100 material loss.  If $100 is lost per week, a branch needs $130,000 in additional sales each year just to break even.  If your employees have not bought into concepts of Inventory Control (Controlling what is in your warehouse) and Inventory Management (Managing your inventory investment to maximize net profits), you will have difficulty reaching your financial goals.

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