THE SPURS ARE DEAD…….. BUT ARE THEY BURIED?

The million dollar question in San Antonio these days is “What is the state of the Spurs?” I guess that really should be the multi-million dollar question judging from the size of these quy’s contracts.

Professional sports is big business. It is high stakes poker at the highest level. As a businessman, I certainly don’t envy Peter Holt and staff’s current dilemma. They have invested millions of dollars over the next three years in a pair of 34+ past-their-prime superstars. They have a 6-10 point-center that hasn’t gotten a rebound in two years while making a few million. Throw in a worn out, unmotivated guard that also rakes in millions and Mr. Holt has some issues. Worse yet, the chances of getting a “difference maker” in the number 20 spot in the upcoming draft is rather remote.

Wow, what a tangled web!

But this blog is not about the Spurs. It is about business management. It is about managing your assets and allocating those assets in their highest and best use. It is about making the very tough choices that all managers face regarding their personnel. It is about managing the company’s financial resources in the most efficient manner.

Last year was a difficult year for our CPA firm. Our sales were flat, but our budget and related staffing levels were set to accommodate our average increase of 20% per year. In our business, to be successful, you must have trained staff available to serve new clients. If you wait until you get new customers to add staff, you will lose those clients. So, we staffed and trained based on those historical averages. Oops!

As 2009 trudged on, we realized that sales were not going to hit their historical average. As a result, we had to reduce staff. We had to weigh salary and experience. It is one thing to fire someone that does not do their job; but, it is an entirely different (and difficult) task to terminate people that have been loyal and valued employees. BUT, as the manager, there are times when you have to do what is best for the company’s long term, regardless of the short term pain.

As a manager we must understand our position and the responsibility that accompanies it. Good luck.