Five Pages Run a Billion-Dollar Company

“We don't look over the shoulders of our general managers and we don't ask them to submit voluminous nous reports, explaining their actions. But that doesn't mean we're not paying attention. Delegation without information is suicide. Every week, each division sends headquarters a few key numbers that, taken together, give us a "snapshot" shot" of their basic operations from beginning to end: • Quotes (bids) • Orders • Production • Backlog • Inventory • Shipments These numbers for all of Nucor's divisions print out on one 8.5" x 11" sheet of paper. A second weekly report, about four pages long, compares the current week's numbers with those of the preceding week, shows each division's numbers over a period of thirteen weeks, and compares the current figures to the corresponding thirteen weeks of the preceding year. This enables us to look at trends. And since the reports are compiled by a computer, puter, these comparisons are very easy to generate. In total, then, we rely on about five pages of data to keep abreast of the weekly operations of twenty-one one divisions across a multibillion-dollar corporation. tion. I review the weekly reports every Wednesday morning over coffee. If the numbers for a particular division look out of whack, we know we need more information. John Correnti (Nucor's president and CEO) or I will call the general manager right away. They're rarely surprised to hear from us. They know when the numbers are likely to trigger questions. If, on the other hand, the numbers are on track, we assume their operations are doing just fine. We know they'll call us if they need us.”

“You can't wait for someone else to come along and relieve you of the burden of information overload. load. You have to do it for yourself. You have to fight back. The key is to identify the fraction of information tion that truly is useful to you, so you can concentrate on it. That was how I gradually pared down the information I'd allow others to burden me with to the handful of data points I've just described.”