Understanding the Health Check - Phase 9: Work Mix Management
Phase 9 is characterised by manipulating your sales and work mix to further increase productivity and revenue
A business that has completed this phase would check off the following as true...
In Phase Nine, you will understand the type and volume of work that maximises your profit given your nominated constraint.
You’ll notice that salespeople are using their knowledge of “throughput dollar velocity” to steer the sales mix towards faster money, high throughput jobs, and combinations of jobs that profitably fill available capacity.
- Salespeople are using the visual boards to tune their sales priorities.
- Salespeople will be deploying capacity-gap filling tactics to increase and protect daily throughput.
- Salespeople will be deploying sales offers that your competitors choose not to mimic, yet these offers differentiate you in the market allowing you to ‘bank' more throughput.
There will have been an increase in throughput generated by the business and this increase will have stabilised and become reliable. Your overall margins will have increased with a corresponding jump in your cash flow. Your regular repeat business will put you into profit every month; It is actually hard to make a loss!
Lower margin jobs that only require resources with free capacity, or require little constraint capacity, are moving freely through the system with little disruption.