Write it down!

by Fred F. Richards, Jr.

A most important lesson.

As a freshman engineering student, we had a Professor who insisted that we turn in our assigned work each class as well as our notes from class. He insisted that learning was improved by reinforcing verbal and reading communication. If you really wanted to learn a subject and/or fact, it helped to write it down.

Even if you are gifted with a photographic memory, the ability to write it down can serve to cement facts into your mind so that they can be recalled.

Many years ago, I wrote a case on the "Last of the Buggy Whip Manufacturers" for the Harvard Business School. The company was the most profitable company I have ever seen. It had a gross profit of 95%. The owner took all orders over the phone or through the mail. He hired piece workers to make the products. Each piece worker was given her instructions on the inside of an envelope which he had received in the mail. But every thing was accounted for by his method of writing it down. Of course, since his business was all cash, he did not use sequential numbers nor did he have invoices. But he did know from the back of the envelopes exactly how much cash he had in his safe and the bank as well as the amount he owed or inventory his piece workers had in their possession. When we asked to see his financial statements, he pulled out a few old envelopes dated the end of each of the past 10 years and said here they are.

Checklists

Checklists were designed for a purpose. As such, they serve to make sure that nothing is left to chance. The NASA flight sequence checklists cover volumes and almost any conceivable malfunction. It is not taken lightly.

Every housewife knows the benefit of making out the grocery list, the "honey-do" list, the family schedule, and the vacation checklist. It only takes one instance of going to the airport with all your luggage, spouse, children and family pet and upon arriving finding that you left your wallet and airline tickets back on the dresser to make you a real believer in making a list and checking it twice.

Documentation

Several years ago, we had an interest in a furniture manufacturing studio. The General Manager and Designer kept all the designs in his head. One day, he called us after learning from the Doctor that he had an inoperable brain cancer and would have to resign that day. Talk about panic! The next few days and weeks were spent documenting every design and construction detail so that the company could continue in operation.

Many times our firm has been called in to salvage and document proprietary financial systems. Often the system analysts and computer programmers had long departed the scene and the documentation was practically non-existent. We have made many computer programmers (both in-house and outside contractors) angry by insisting that the job is not finished until the documentation is complete and up-to-date.

The Day Timer or Pocket Notebook

About 40 years ago, the Day Timer Company arrived on the scene providing its handy daily dairy in a monthly format. Word of mouth spread its popularity until many other companies tried to copy its success. But none could. For not only were they successful in marketing to the public but the product which could be purchased in several formats was better than most of its competitors.

The Personal Digital Assistant

At the beginning of the 1990's, the PDA appeared on the market. But despite some additional tricks, the PDA only duplicated in electronic form, information will had been written down for years on paper. While technology is now expanding the range of the PDA equipment, the old adage of writing it down remains important.

Audit Paper Trails

Writing it down can prevent fraud by leaving an audit trail. Depending upon your needs, the sanctity of your financial control systems should be paramount. During 1999, we consulted with a client on the verge of bankruptcy because trusted employees had circumvented a weak currency control system. Incoming cash revenues were being siphoned to the employees personal accounts and since no record was kept of the cash taken from the coin boxes, it was almost impossible to prove the extent of the loss. The only clue we had was the amount of water and supplies running through the car wash locations. But it is not an exaggeration to say that before the owner discovered the problem, over $250,000 had probably been stolen. At least, that amount had been deposited in one employees bank account but how much cash did not get deposited will never be known but it was probably twice the $250,000.

Brilliant Insights

Perhaps, the most important reason to write it down is to make a fortune. Many of my creative friends tell me that they carry a notepad with them everywhere and even have one beside their bed. Then when they get a flash of inspiration they write it down and have a record. How many times have you gotten that flash, said I'll write it down tomorrow, and then could not remember what it was the next morning?

Many times after giving a seminar on Entrepreneurship, attendees will ask how do you get an idea about starting a business. My stock answer is simply this. Take a notepad with you everywhere. Look at the world with a critical eye. Try to see things that can be done better, cheaper or with less waste. Write down those observations. Study them. Critique them. And just maybe, you can build a business and become a millionaire. One lady using such a system discovered a new way to tie up girl's hair and made $1,000,000 the first year. So write it down!

Last update - February 28, 2007