The most important thing the general manager can do is set the objectives and follow progress.  Sometimes that is hard to do.  Here are three examples of tools that help, a lot.

• Benchmark analysis  How does your unit(s) compare to others in the industry in profit margin and return on investment?  What are the reasons for the differences?   What management objectives are suggested in costs, product line, equipment, capabilities?

• DuPont Formula Analysis        Relate profit margin, asset turnover, return on investment, and their component parts, so that management can focus on the truly critical variables.

• Standard costs analysis    Install a system of management reporting using standard costs that shows volume and unit rate variances and accounts for labor and materials variances.

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