TCMBA #17 - Creating a Culture of Numbers
Hallo!
(I’m in Berlin now so I’m practicing my German!)
Here’s what’s on the docket today:
Building a Culture of Numbers
Community Corner
Thanks to subscriber Jen 👋 for requesting to learn more about…
A Culture of Numbers!!!
Compare these two scenarios:
❌ Your operations manager says to you one day, “I really think we need a conveyor sealer. I saw one at another coffee roaster and it seems like we would be so much faster when bagging coffee.”
vs.
✅ Your operations manager schedules a meeting with you to say, “I’d like to save us over $7,000 per year. If we pay just $800 for a conveyor bag sealer to replace our manual one, we’ll gain back 500 hours of our production team’s time. This saves us about $7,200 in labor the first year (after deducting the cost of the machine), and it will preserve the team’s lower backs! Now, they have to bend slightly to seal bags and, with the conveyor, they can stay fully upright. I’d love to add this to our budget next quarter because my team hasn’t used our full budget for supplies. After the meeting I’ll share my numbers and the info about the sealer for you to review. I’ll also schedule a follow-up call for next week to see if you have any feedback.”
Ta-da!
This last scenario is what I mean when I say a Culture of Numbers!
It’s when the team has enough financial literacy that everyone naturally expects that both the top line and bottom line are considered in decision-making.
I call it a “culture” of numbers, because, ideally, it happens without anyone having to ask. It’s just how people think, talk, and plan.
Let’s break down the “Culture of Numbers” scenario…
The operations manager came to the meeting prepared, with their own point of view clearly outlined.
The math was done before the meeting.
There are added benefits besides just the bottom line (which are sometimes more important).
The manager is clearly tracking their spending compared to budget.
Ample time and resources are given to make a final decision.
Are you an individual contributor? Then start engaging in this kind of behavior, even if you aren’t working in this type of culture. Rising tides raise all ships! Numbers can be tough to get in some organizations, but you can do your best with good estimates.
Are you a leader? Start requiring this from your team! Work through these scenarios together at the beginning so that everyone gets the hang of it. The exciting thing is, you’ll eventually spend less and less time analyzing key decisions because the people closest to the issues will make them. That’s a “Lean Principle” in action!
Here are a few more tips to get you started…
Share your P&L far and wide within your org. If you’ve been a subscriber for a while, you know that this is a huge unlock for you and your business.
Teach your team how to make a Business Case.
Model this behavior yourself. Whenever sharing a new initiative, be sure to back it up with data and dig into the “why” behind it.
So what do you think? Do you currently have a Culture of Numbers in your business? Or is something standing in your way? Hit “reply” and let me know!
Don’t forget, if you need some help and accountability on building this out for your business, you can join The Coffee MBA Community!
Next week’s resource that’s dropping in the community is How to Make a Business Case! Join us!
Community Corner! ☕️ 📈
Over the past two weeks, here’s a bit of what’s happened in The Coffee MBA Community!
We’re proving that the coffee world is SMALL as members continue connecting with one another.
There’s a new tutorial on how to get started with posting on LinkedIn.
I analyze a coffee bag from The Barn to see if it passes the Product Marketing test
Want to join? Check it out here!
And that’s it!
Hope you all have a great weekend. Reply to this email with any thoughts, questions or topic requests!
Tschüss!
Miranda
When you’re ready for help, here’s how we can work together:
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