Trying to grow a business that can’t quite get to the next level can be frustrating. Trying to turnaround a business that has experienced some setbacks can be frustrating. Most frustration comes from an entrepreneur not really understanding why they can’t get to where they want to be when it appears that they are busy and their team appears focused. The problem may not be the team or the work but rather the size of the team and the type of work they are doing. Being right sized as a business means that all of your people and resources are being used in a way that produces the best result for a business. But what does that mean?
500 jobs. Gone. An $85 million dollar reduction to annual expenses. Non-core business assets being sold. All of these steps are being taken by Bed, Bath and Beyond as they look to right size their business. The restructuring plan will trim several hundred million dollars over the next few years with CEO Mark Tritton stating “We are announcing extensive changes today to right-size our organization as part of our efforts to reconstruct a modern, durable business model”. Looking to reset their cost structure, Bed, Bath and Beyond is hopeful that they can re-establish themselves as the authority in their marketplace.
Your team has a limited amount of hours. Your business has a limited amount of resources. Each task in your business takes a certain amount of time to complete and there is a certain amount of time required to service each of your customers and complete the accompanying tasks. Given the amount of customers your business is serving and the amount of revenue being generated, does your business have excess time and resources not being fully utilized? Is your business running short on people and resources? Being right sized means that your business is able to use the people and resources available to generate the best result possible.