Chapter 59: Refined Management and Cost Control of Family Businesses



After a series of expansions and investments, family businesses have gradually realized the importance of refined management and cost control for the sustainable and healthy development of the business.

To achieve refined management, the family business first reorganized and optimized its internal organizational structure, eliminating redundant departments and positions, streamlining workflows, and improving decision-making efficiency.

"We need to make every link of the enterprise run efficiently and reduce internal friction." The company's top management said firmly at the management reform meeting.

In terms of human resources management, the family business has established a comprehensive performance appraisal system, which provides corresponding rewards and promotion opportunities based on employees' work performance and contributions, thereby stimulating their enthusiasm and creativity.

"Only by allowing every employee to maximize their potential can the company continue to move forward." The human resources department has carefully designed assessment indicators and evaluation methods.

However, the implementation of the new performance appraisal system encountered some resistance. Some employees did not understand the new evaluation standards and believed they were too strict, which affected their work enthusiasm.

"We need to strengthen communication and training with employees to make them understand that the purpose of assessment is to help everyone improve their abilities and achieve common development of individuals and enterprises." The human resources department organized a number of training sessions and seminars to answer employees' questions.

At the same time, the family business has strengthened the refined management of the production process. It has introduced an advanced production management system to monitor every link in the production line in real time to ensure the stability of product quality and the improvement of production efficiency.

"Through this system, we can promptly identify problems in production and take prompt measures to resolve them." The head of the production department is full of confidence in the new system.

However, during the initial operation phase of the system, some production delays and quality fluctuations occurred due to employees' lack of familiarity with the operation of the new system.

"Don't worry, everyone. We need to strengthen training and practice so that you can become familiar with the operation of the new system as soon as possible." The production department organized special training courses and arranged technical personnel to provide on-site guidance.

In terms of cost control, the family business has implemented a series of strict measures. They have conducted in-depth analysis and optimization of the procurement process, and reduced the cost of raw material procurement through negotiations with suppliers and centralized procurement.

"Every penny saved can bring more profit space to the company." The staff of the purchasing department are working hard to find ways to reduce costs.

However, excessive cost reduction has also brought some problems. In order to reduce prices, some suppliers have reduced the quality of raw materials, resulting in product quality problems.

"We can't just look at the price, we also have to ensure the quality of the raw materials." The quality control department has strengthened the inspection and review of raw materials.

In addition, the family business has also strictly controlled marketing expenses, reduced unnecessary advertising and marketing activities, and placed greater emphasis on evaluating and optimizing marketing results.

"We must spend money wisely and ensure that every marketing activity can bring tangible benefits." The marketing department re-established its marketing strategy and budget plan.

But this also led to a temporary decline in brand exposure and had a certain impact on market share.

"We need to find more effective marketing methods while controlling costs." The marketing team began to explore new marketing channels and methods, such as social media marketing and content marketing.

After a period of adjustment and optimization, the family business's refined management and cost control have achieved certain results. Production efficiency has increased, product quality has stabilized, and costs have been effectively controlled.

But they also understand that this is just the beginning and needs continuous improvement and perfection.

The family business decided to further deepen its refined management approach and expand it to every corner of the company. They implemented refined management of R&D, optimizing the R&D process, improving R&D efficiency, and reducing R&D costs.

When developing a new product, we clarify the tasks and goals of each stage through refined project management, and strictly control the time nodes and cost budgets.

"This can avoid confusion and waste in the R&D process and ensure that products are launched on time and with high quality." The head of the R&D department is full of expectations for the new management method.

However, in actual operation, the project progress was still affected to a certain extent due to changes in market demand and the emergence of technical difficulties.

"We need to adjust the plan in a timely manner and respond flexibly to various changes." The R&D team responded quickly and optimized and improved the project.

At the same time, the family business has strengthened the refined management of after-sales service and established a customer feedback mechanism to promptly handle customer complaints and suggestions and improve customer satisfaction.

"After-sales service is an important reflection of the corporate image. We want our customers to feel our care and responsibility." The after-sales service department has strengthened training and improved service levels.

In terms of cost control, family businesses have begun to focus on controlling hidden costs. They conduct detailed analysis and management of daily expenses such as office expenses, water and electricity bills, and eliminate waste.

"Every drop of water and every kilowatt-hour of electricity must be saved, and a little adds up to a lot." The administrative department has formulated strict conservation measures and strengthened supervision and inspection.

However, some employees have become dissatisfied with overly strict cost control measures, believing that they affect their work convenience and comfort.

"We need to find a balance between controlling costs and protecting the working environment for employees." The company's top management listened carefully to the opinions of employees and made appropriate adjustments to cost control measures.

In addition, the family business has strengthened its refined inventory management, reducing inventory backlogs and capital occupation through accurate market forecasts and reasonable inventory control.

"Inventory management is a science. We need to ensure that there is neither shortage of goods nor backlog of goods." The logistics department works closely with the sales department to continuously optimize inventory strategies.

On the road of refined management and cost control, family businesses continue to explore and innovate, striving to find the best balance point and lay a solid foundation for the sustainable development of the company.

In the future, they will continue to adhere to this concept, constantly improve the company's competitiveness, and respond to increasingly fierce market challenges.

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