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Saving $1 Million through HABUT

Saving $1 Million through HABUT

January 24, 2016

Finish Point is a multimillion dollar, high-end wood finishing company we have worked with over the years. Since their net profit is relatively small, they have to sell about an extra $1 million to generate $50,000 for their bottom line.

Cost savings would have a huge impact.

Finish Point came to us for help.

We took a look at the team players and discovered a seemingly small problem which would have a huge impact.

See, Shawn Van Dyke, the company's COO loved doing design work.

Shawn Van Dyke (L), Josh Andrews (R) 

It had to get done and he was more than happy to do the job. He was really good at it too. This issue was that this wasn't Shawn's job.

Shawn, as the COO, had a much higher pay grade, yet he was spending his salaried time doing a job meant for someone else. He was a great asset to the company, but was costing them thousands of dollars in misspent salaried time! Once we cracked the mystery, we got to work breaking this bottleneck.

Josh Andrews was the CEO. It turns out that design was really supposed to be in his ball court. Josh and Shawn needed a Courageous Conversation. They spoke non-judgmentally and productively to get on the same page about who should be doing the design work and why. This wasn't easy, but the potential payoff was huge.

To learn more about how to have a Courageous Conversation, CLICK HERE.

The next step was the real challenge. Shawn not only delegated the design work, to Josh, but he slowed down to speed up and trained Josh personally. Shawn took a step back from his day to day work. He simplified and codified the art and science of wood design, then patiently trained Josh.

This takes real inner strength. See, most leaders don't want to give up what they're good at, especially if they enjoy doing it. But the only way to grow a company is by constantly freeing up leaders from doing tasks that prevent them from actually leading their company.

Over the course of 3 years, this saved the company $50,000 in misspent salaried time. This money went straight to their bottom line and is the equivalent of bringing in $1 million in sales (not including the overall profit gain from a more efficient company.) They saved all of this money by simply focusing on their team players' HABUT.

What's HABUT?

Well, we at Brand Launcher have seen this scenario so many times that we've actually coined a term for it. It's called HABUT, Highest And Best Use of Time.

Learn the 5 Steps to Your Greatest HABUT here.

One of the biggest obstacles facing leaders is that they can't do their job. They're supposed to be running the company, but they're too busy answering emails and putting out fires.

"If you want to be the pilot and fly the plane, stop serving drinks in the back of the plane."

By focusing each team member on his HABUT, individual and overall productivity improves dramatically, like it did with Finish Point. Start working on your business instead of in it. Focus on your HABUT and increase your and your team's productivity one task at a time.

Learn the 5 Steps to Your Greatest  HABUT  here.

Taking you from where you are to where you want to be,

Jon Goldman