Why talking to your people is the most important thing you can do!

For a new acquisition, there's a general template I follow for the 1st 100 days.

The Number One point on that list is PEOPLE

I have failed this once, and succeeded once, let me share why this is most important.

1. You are in spreadsheet mode

When working on a new acquisition you are in the numbers and in the models.

Net working capital true-up
First 6 mo cash flow
Valuation multiple
Realizable EBITDA
etc

Many new acquirers don't come out of this, and lose customers, employees, and $$

2. Verifying the Model

Post acquisition, you are verifying the model in realtime, adjusting, making sure you are good with the bank, investors, yourself.

You are checking actual expenses to see if they match.

Perhaps you are implementing a few easy cost cuts.

People!

3. Your people hold the answers.

Often the people that have been there, can will be happy to give you the scoop on

1. customers
2. service improvement ideas
3. Plant issues
4. under / over staffing
5. needs & investments

They have been there, and usually not been able to share

4. Small Window

There is a small window of time where they are:

1. looking to see if they will now have input
2. willing to speak up more boldly than normal
3. Evaluating how they feel about you
4. Earning (or losing) respect for you as an owner

You cannot miss this window!

A list of questions and checks to help you see if you should automate a process or not.

I've had a lot of people asking for this.

This is just what I use.

1st half are open-ended questions for exploration
2nd half are rankings for prioritization.

Hope this helps you!

1. Do I understand what I am automating?

Often times we think we are automating a process, but instead, we may be automating a destructive pattern.

Do it manually for a few weeks.

Dont perpetuate bad actions.

Go through the learning as a person, automate what you learned.

Example:

If you are filtering people for hire, and you automate right off the bat, you may automate based on the wrong criteria.

Its better to filter manually, do some calls, have some interviews, and adjust the process a bit until you are automating the right thing.

2. What do I gain?

Automating, just to automate is not useful. It just creates another system to maintain without any upside.

Each automation adds to the complexity of your business process. As complexity increases, so does areas for breakage and unintended consequences.

3. What do I lose?

Every automation results in loss.

Proximity to the process.

You may miss a "regime shift" as things change.

You may lose closeness to your customers and personal interaction.

You miss an understanding of your operation as it grows or changes.