Written on: December 16, 2024 by Phillip J. Baratz
As Monday morning begins, your team gathers for the weekly management meeting. To make the most of this time, it’s essential to have a clear purpose and agenda. A heating company juggles many operations simultaneously, from sales and marketing to service and installation, deliveries, customer service, collections, cancellations, banking and financial reporting. With so many moving parts, deciding what to cover in your weekly meeting is critical and can greatly impact your company’s performance.
While there’s no one-size-fits-all approach, as important topics differ by company and season, your meeting agenda should be well-planned, relevant and consistent. Drawing from our experiences with successful companies, we’ve compiled essential topics that merit consideration in your weekly reviews. More importantly, we’ll explore the potential costs of not addressing these areas effectively.
Margin Review: Uncovering Hidden Financial Drains
Margin Review should be a cornerstone of your weekly meetings. This involves breaking down budgeted margins by month, product, trade class and pricing code. Each meeting should include an assessment of month-to-date performance to identify and address any discrepancies in volume or per-gallon margins.
The cost of not diving deep into margin analysis can be substantial. Unaddressed margin erosion, whether due to pricing inconsistencies, product mix shifts or operational inefficiencies, can silently eat away at your profitability. By consistently reviewing margins and addressing root causes of discrepancies, you can prevent significant financial losses over time.
Customer Gains & Losses: The Silent Killer of Growth
Customer Gains & Losses need weekly attention, as they directly affect your business’ growth and stability. While some customer losses are hard to reverse, “sold property” or “moved” customers can offer new opportunities if approached strategically.
Failing to thoroughly analyze customer churn and acquisition can lead to stagnant growth or even decline. The true cost lies not just in the immediate loss of revenue, but in the missed opportunities for referrals, up-sells and long-term customer value. Regular reviews, comparisons against budgeted figures and follow-up action assignments can help capitalize on potential gains and address underlying issues causing customer attrition.
High Delivery Volume Variances: The Hidden Efficiency Drain
High Delivery Volume Variances deserve scrutiny. Significant differences between expected and actual delivery volumes can be costly. For monitored accounts, confirm that monitors are working and installed correctly. For non-monitored tanks, analyze K-factors, baseloads and delivery intervals.
The pain of not addressing these variances extends beyond just wasted fuel. It can lead to increased labor costs, customer dissatisfaction due to run-outs or overfills, and inefficient route planning. By establishing a review process and follow-up responsibilities, you can minimize these variances and their associated costs, improving both operational efficiency and customer satisfaction.
Tracking Missing Miles & Hours: The Key to Accurate Decision-Making
Tracking Missing Miles & Hours is crucial for accurate net profit calculations. While “gallons and price” data are usually reliable for billing, drivers often forget to record miles and hours. This oversight can have far-reaching consequences.
The cost of incomplete data goes beyond just inaccurate profit calculations. It can lead to misguided strategic decisions, ineffective resource allocation and missed opportunities for efficiency improvements. Implementing a system to ensure consistent tracking, via incentives or consequences, is vital for comprehensive financial analysis and informed decision-making.
Beyond the Basics: Addressing Root Causes
While these topics provide a strong foundation, the most effective weekly meetings go beyond surface-level discussions to address root causes and implement lasting solutions. Consider including:
1. Root Cause Analysis: For each issue identified, dig deeper to understand the underlying factors.
2. Action Plan Development: Create specific, measurable action plans to address identified issues.
3. Progress Tracking: Regularly review the progress of implemented solutions.
4. Continuous Improvement Discussions: Encourage team input on process improvements and innovative solutions.
By focusing on relevant, actionable items and their root causes, you can turn your weekly management meeting into a powerful tool for driving continuous improvement and success for your heating company.
Remember, the true cost lies not in what you discuss during these meetings, but in the problems that persist when root causes go unaddressed. Each unresolved issue represents a drain on your resources, efficiency and, ultimately, your bottom line.
Working with experienced consultants can provide valuable insights into identifying these hidden costs and developing effective solutions. Their expertise can help you optimize your weekly meetings, uncover the true impact of persistent issues and implement strategies that drive meaningful financial improvements.
By making your weekly management meeting a forum for in-depth analysis, root cause identification and solution implementation, you position your company to overcome challenges, capitalize on opportunities and achieve sustainable growth. The most successful companies are those that not only identify problems but relentlessly pursue and implement effective solutions. ICM
