The Basics of Matrix Management

A former captain in the US Army, Yasser Josue Brenes has found success as an operational administrator and senior executive at a number of large US companies. Since March 2022, Yasser J. Brenes has served as area president with Republic Services in Houston, Texas.

Republic Services fosters a matrix management environment that requires top administrative leaders to oversee a wider infrastructure of senior-level manager teams. When it first rose to prominence in the late 1970s, the matrix management approach addressed the increasing levels of complexity in business projects and operations. As interactions along project, product, and geographical lines have become increasingly important, traditional business hierarchies have become less and less effective.

Matrix management replaces the simple, single-boss, vertical system with an alternative that places employees beneath multiple superiors. Although it is more complex, matrix management allows for far greater efficiency when it comes to functionality and productivity. A company employing a matrix approach might have employees from engineering, customer service, sales, human resources, and finance working closely together on a single project.

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The Two Basic Types of P&L Statements

An accomplished senior business administrator, Yasser Josue Brenes has served as Area President- South Area, based out of Houston TX for Republic Services since March 2022. In this role, Yasser J. Brenes has prepared P&L statements for companies with more than $900 million in assets.

Short for profit and loss, P&L is one of several metrics that help identify the overall financial health of a company. Subtracting total company expenses from total company revenue to determine net profit or loss, officials generally generate P&L statements on an annual, quarterly, monthly, or weekly basis.

Finance and business professionals can create P&L statements using cash or accrual methods. The simplest of these two methods, the cash method, tabulates all monetary assets that have gone into or out of a company. Smaller businesses generally employ this method.

Although the accrual method is significantly more complicated than the cash method, it is ideal for companies that want to draw a more accurate picture of overall financial health moving forward. A record of revenue as it is earned and expenses as they are paid, an accrual P&L statement takes incoming payments into account that a company has not yet received as well as outgoing liabilities that it has not yet paid.

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Two Formulas to Calculate a Company EBITDA

Equipped with an MBA from the Pacific Lutheran University and a Human Resource Certificate from Cornell University, Yasser Josue Brenes serves as the Area President for the South Area for Republic Services, Inc based out of Houston, TX. He oversees one of the ten Areas of the company’s field operations and is responsible for overseeing a $ 1.5 Billion in annual revenue. Another critical facet Yasser J. Brenes manages is optimizing the company’s return on net operating assets and the earnings before interest, taxes, depreciation, and amortization (EBITDA).

EBITDA is a useful tool and indicator of a company’s financial health and performance and comparing baseline between two similarly sized companies in the same niche. To get the company’s EBITDA, you add the earnings, interest, taxes, depreciation, and amortization.

However, different approaches yield diverse figures as finance and business analysts, executives and investors use two ways to calculate EBITDA-either the operating or the net income.

Firstly, when using the operating income formula, you utilize the company’s profit after deducting operating expenses such as wages and day-to-day expenses without including any taxes or interest on short and long-term debts. Add the result to the depreciation and amortization costs to get the EBITDA. Sometimes the two are already included in the operating expenses.

The second formula using the net income includes the taxes and interest in the total operational expenses. Add the depreciation and amortization to calculate the EBITDA. In this instance, part of the expenses includes one-time expenditures or non-operating income.

The choice between the two formulas depends on the nature of the business. Ignoring the interest figure-as is in the operating income formula- for companies with large loans yield a higher EBITDA- thus a deceiving figure for an investor. In the same vein, ignoring the depreciation figure for a company with a large asset base, such as heavy construction machinery, makes an unprofitable company seem financially attractive.

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Customer is Still King – From Customer Service to Customer Experience

Before customer experience (CX) was a thing, businesses treated customer service as an afterthought. They made no deliberate efforts to improve customer service. Then emerged some semblance of customer service, characterized by designated booths where customers would queue to access customer service.

As businesses shifted from customer service of convenience to customer-centric efforts, customer service moved to the telephone. Still, customers would be put on hold for hours, waiting to speak to the “next available representative.” Power still lies in the hands of the service/product provider. However, with the emergence of social media, power shifted back to the customer.

Today’s customer has limitless social media outlets at their disposal. They can now communicate instantly through instant messaging platforms, Twitter, Facebook, or email. Businesses also do not control these media, meaning customers can now share bad experiences with the masses unrestricted. In the past, businesses monopolized information outlets, restricting information about them and their products that became accessible to customers.

Today’s customer expects the whole CX package, and they want it 24/7, through a most convenient channel. Businesses that serve a global market have had to innovate. They realized they serve customers who speak different languages and are in different time zones. A customer, say in the far-east, is not waiting around for a US-based office to open in the morning so they can get answers to their most pressing questions.

The quest for on-time, convenient customer service gave birth to self-service. It started with Frequently Asked Questions (FAQs), empowering customers to solve customer service issues on their command. Then came Artificial Intelligence-powered, text-based chatbots. Today, some smarbots leverage the power of predictive analytics to tailor CX to individual customer needs, improving customer loyalty and retention.

Customer service used to be about assisting customers on specific issues. However, the focus has shifted to CX for a more holistic approach to customer service. Today, the customer service experience is so important that 63 percent of Americans would permit companies to collect personal information for a more personalized CX.

CX maps out a customer’s journey and interactions with a business. It takes individual customer service needs and other important touchpoints into account. It has become one of the most sought-after drivers of the business’ success. In 2019, 75 percent of businesses competed on the CX front. Businesses that are not doing enough to streamline the customer experience risk losing customers to those that put their customers first. Even the most beloved brands risk losing customers because of bad customer service experiences.

A 2018 PWC survey revealed that 59 percent of Americans would avoid a brand after numerous bad experiences. For 17 percent of Americans, one bad experience is enough to walk away, even if they love the product or brand. On the brand front, customer-centric businesses registered 4-8 percent higher revenue than the rest.

The age of omnichannel customer support is here. Customers who can’t reach customer support personnel through email can tweet them and have their issues resolved in no time. There are FAQs, chatbots, and smartbots to walk them through the troubleshooting process for the handy ones. Today’s customer service endeavors are customer-centric, and businesses that treat the customer as an afterthought will lose them.

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