44 44 | FINANCE
Team building makes financial sense
The financial reasoning of large businesses investing considerable sums of money in building and developing team development is often questioned. In transport is the secret of financial success not simply the ability to minimise costs and maximise revenue and then gain the financial surplus tax efficiently?
The captain of a good team, or the boss of an effectively operating business that is full of team spirit will pick a group with various talents and abilities. To do all jobs within the business, overall success is best achieved by delegating the work, either because of a time constraint on the skipper, or, because of the technical (or mundane) nature of the work, it is best done by others. Most small to medium transport firms are family businesses, they operate a top down approach to management, and a proven belief that all workers must be supervised in order to get acceptable returns for wages paid. No outside party or employee will have a share in the FLEETTRANSPORT | AUG 21
business, and it is preferable to own 100% of a small low margin entity than to be a stakeholder in a larger entity where control is diluted. Financial gain is possible by building a team culture even in a medium sized Irish transport business whereby all employees have respect for one another (often it’s the employees who lack respect for employers who bear all the business risk). Having a team culture means the workload of surveillance and checking is replaced by a group ethos that the business’s results and survival are in the hands of all employees. These employees get feedback on how they are performing and how the business is doing, and then there is a culture of pride in the business. Imagine a business where pilferage and absenteeism is not tolerated by the workers and is effectively policed by the staff themselves? The economic benefits of team building are lower maintenance and fuel costs, stronger customer retention, business leads, elimination of theft, lower staff turnover and agreed work practices and productivity that benefits hard work. Multi-national companies take work groups and place them in an environment where they have to assist one another to overcome challenges and succeed. It can be very interesting to see five senior managers cast into a boat and sail under the instructions of a teenage girl who is stronger, quicker and more resourceful than these five heads, collectively they have to work together and
take instruction from an expert who will assist them to work better as a team. Team leaders in business, as in sport, are determined, clear minded and assertive but not aggressive. Even in rugby, losing the head by the Captain shows weakness and ultimately can cost the match. Having a business operate as a team, with an assertive team leader (the boss) can provide the financial gain from 100% supervision without having the extra hours and the drain on any one individual. If a work environment can be created where bottom line is maximised and it’s not fully dependent on any one individual, there is a far more valuable entity established, a far more enjoyable work environment, and an entity that will weather financial difficulties far better. The biggest single issue in creating a team environment in transport is changing the boss’s mentality on how the business should or could be run, and even how to interact with staff. Dependent on what the future for the business is, and the ultimate size and value of it, the development of both a management team and workforce team are crucial in this process. A limited number of transport companies operate this team culture successfully. It’s interesting to see genuine pride in the company uniform, an open management style and feedback from drivers that will not tolerate poor performance as it impinges on their earnings and overall status of the business. Suppliers to the company are also part of the team, as are customers, so collectively, the business has a common goal that links all parties. From a financial point of view team building improves the bottom line, it reduces the risks in the business and makes it more secure re business continuity or sale. There is something very rewarding to hear back from external sources that staff have pride and respect for the business they work in. Text: Donal Dempsey – donal@fleet.ie
