Six Steps To Make Your In-plant Financially Fit
Is your in-plant valued by your parent organization for its financial contribution and cost-efficient growth? Here are six areas to focus on to ensure your shop gets the respect it deserves.March 2011 By Jerry Sampson
4. Competitive Advantage
The strongest in-plant is the one that maximizes its unique advantages and business niches to give the parent organization value it can't get at a lesser cost from an alternative source. Aligning the mission of your broader organization with your in-plant's own business mission is absolutely essential. Look for as many matches as you can find. For example, consider using company or purchased data to provide cross-channel marketing or your own dedicated Web site. Create efficient production workflows that give your in-plant an advantage. One area where in-plants have long held the advantage is information security. Keeping data within the in-plant, rather than sending it out to external services providers, translates to increased security of business information.
5. Sales & Marketing Excellence
Too often, in-plant managers have not adequately focused on creating a top-tier sales and marketing program targeting their internal customers. Marketing is about enhancing growth opportunities. This marketing must compete with strategies that hardware vendors, facilities management (FM) firms and print-for-pay services use to attract customers. The challenge must not be taken lightly—and it's especially important given the abundance of low-cost alternative media choices. The key is to use print to complement and reinforce electronic media. We know well that print can reinforce electronic media, driving traffic to Web sites and stimulating lead generation, new business and more. And, of course, electronic media can reinforce the advantages of well-done print.
6. Win Management Support
Regular and very clear communication of financial contributions with comparison to the prior month, quarter and year (with explanation for changes) is non-negotiable in any business today. Market your vision for the in-plant, clearly articulate your value propositions and update your one-to-two page business plan to make that happen. Documenting steady business increases, cost containment, the addition of higher-value products/services and customer success stories will provide management with the information that prevents the inevitable question: "What is our in-plant doing and why?" Or worse: "Do we really need our in-plant?"
Making Your In-Plant a "Buy"
After a reviewing the six criteria and making a rigorous assessment of where you stand, accelerating growth is likely at the top of your "to do" list. Cost reduction and efficiency are important goals and can generate hard savings, while spurring growth. Of course, growth is the most effective way to expand management confidence in the in-plant, win new investment opportunities and achieve deserved recognition. You can build growth by being sure your business plan stresses discovery, strategy, marketing and sales.
Follow the six rules outlined above and you will become your in-plant's chief strategy officer, chief marketing officer and chief sales officer. Take on these roles with commitment and enthusiasm. Making your in-plant financially fit and thriving is essential. You and your in-plant will earn the respect and support necessary for long-term success.
If a savvy investor would rate your current in-plant a "Hold," start acting today to transform it into a "Buy." Your future may well depend on it.