For the first time you are promoted to the position of a branch manager and asked to take over a branch at a remote place with 55 staff members. So far this place is not yielding any profit to the company. You are given the task of showing profit and reducing expenditure. Mr X is a concerned branch manager who is transferred to improve the rot of this place. Now what X will have to do is-
Don’t go by what the previous branch managers have done. Start with a clean slate. Observe the communication channels between this branch, other branches and headquarters. This can be done through e-mail, intra mail, hard copies, and messengers. Don’t try to correct it immediately. Give a reasonable time for observation.
Meet the existing customers and through them you will come to know left out potential customers. Meet the left out potential customers and find out why they are not purchasing the X’s company products. 20 per cent of these left out potential customers may not suit X’s company products for technical reasons. 80 per cent potential customers are left out. Pursue with them to give X’s company to place a small trial order and know the result. The price for the trial order will be matching their lowest rates. Thus during a period of 3 months or so out of the trial order placed 50% will turn out to be regular or potential customers.
Then Mr X should pay his attention to the work each staff member is doing. It is assumed that a brief introduction is done at the time of X taking over the branch. First X should identify the deadwood whose contribution is almost negligible. Send their names to Head office to deal with them suitably. Then meritorious candidates must be identified X can reward or promote them at a suitable time. A list of candidates including the meritorious ones must be prepared and sent to HR for that year’s training. Of course this exercise has to be followed year after year for other employees in the office. Training details have to be recommended by X to the branch manager. The training must also groom the candidate or employee to take higher responsibilities.
Next X has to look into suitable jobs or job additions for potential meritorious candidates and talk to them about change in their assignments except for rewards and promotions. Give them necessary clarifications whenever they ask for. An intelligent employee could easily guess what is coming on his way and does not refuse the assignment. Thus X has a motivated team and people to depend upon. This can make things for other reshuffling in the jobs easy for X.
Now comes the hard copy record keeping. All records not required can be destroyed with the permission of the CEO. This will create additional space. Statutory records for customs, central excise, commercial taxes and other govt related things have to be preserved as long as they are required to be.
The deadwood employees (it is assumed that the HR department will suitably deal with them) and sales from new customers will increase the revenues. Other expenses can be curtailed except extending courtesy to new customers. To understand the expenditure pattern of the branch X must keep this authority with himself for some period of time before delegating.
Expenditure however small it is may in a cumulative way contribute to the positive side of the revenues of the branch. X the manager of the branch has to carefully and personally look into these before personally passing directives. X has to segregate between essential and non-essential expenditure. Essential has to be there and nothing can be done about it.
Non-essential can be judiciously spent to save up on. The expenditure which is non-essential is like canteen, conveyance, news papers, rentals of machinery not used etc.
Finally with all the above efforts the manager can communicate the facts and figures to the concerned and delegate to them the authority framing a budget. This is applicable to Indian companies and MNCs working in India.