Jim Thompson

Email Jim at jim.thompson@ipulpmedia.com

Special note: I think I do a fairly good job of sticking to our editorial calendar throughout the year. We have that calendar to give advertisers the opportunity to place ads corresponding with our lead editorial each week. Our editorial calendar changes every month. However, there are four months per year that have five Mondays, and I have decided to take that fifth Monday and liberate myself from the editorial calendar. This is one of those.

If you hang around me more than five minutes, you will likely hear me say "spin the invoice printer." Or the invoice printer is the most important machine in any business, government or charity. I say it because it is true. If you cannot produce an invoice demanding payment in exchange for goods or services, you don't have a business. The only other choice is to use a gun, but society tends to frown on collections accomplished at the point of a gun.

The hard to execute part is doing those things necessary and in the precise order to deserve the honor of producing an invoice.

And this is where most management gurus fail. They become wrapped up in the process and never state the objective, namely, spinning the invoice printer.

This is particularly dangerous with those early in their careers. For if the invoice printer objective is not clearly stated to them, they can become process oriented. They can even grow to think that spinning the invoice printer is beneath them.

The ideal business would have an invoice printer and a trained monkey to operate it. That's it. Unfortunately, such a business would end up with lots of returns and allowances.

The closest I have seen to mimicking the monkey scenario is the large tech companies. How many subscriptions to apps and so forth do you have that started out at $2.50 per month? These companies are spinning their invoice printers hundreds of thousands if not millions of times per month for no additional service other than not turn your apps off. And boy, do they make it hard to turn your apps off.

The readers of this column mostly produce goods and services in the pulp and paper industry, so we can't get off as easily as the large tech companies. Hence we do need process training. But occasionally we need to audit our process and eliminate those that have become obsolete. This doesn't happen often enough in most cases.

I'll wrap with this. Remember the objective of spinning the invoice printer. Bring it up often; write it on the walls. It is the path to your source of thriving.

Be safe and we will talk next week.

For a deeper dive, click here.

"Spin the Invoice Printer" Study Guide

I. Understanding the Core Concept

This article, "Simple concept, hard to execute," by Jim Thompson, emphasizes a fundamental business principle: the paramount importance of generating invoices and, by extension, revenue. It argues that all business activities should ultimately serve this objective.

Key Ideas to Grasp:

The "Invoice Printer" as a Metaphor: The invoice printer represents the ultimate goal of any business, government, or charity: to receive payment for goods or services rendered. It symbolizes financial sustainability and success.

"Spinning the Invoice Printer" as the Objective: This phrase signifies the act of successfully generating revenue and ensuring the financial health of an organization. It's the end goal of all processes and efforts.

The Difficulty of Execution: While the concept is simple, achieving it consistently and effectively requires precise actions and a clear focus, which is where many businesses and individuals falter.

Process vs. Objective: A critical distinction is made between becoming "wrapped up in the process" and focusing on the ultimate "objective" of spinning the invoice printer. Processes are means to an end, not ends in themselves.

Danger for Early Career Professionals: Without a clear understanding of the invoice printer objective, new employees can become overly process-oriented, losing sight of the business's core purpose and even viewing revenue generation as "beneath them."

The "Trained Monkey" Ideal (and its Limitations): The theoretical ideal of a business with just an invoice printer and a "trained monkey" highlights the simplicity of the core revenue-generating function. However, this is impractical due to the need for quality goods/services and customer satisfaction (avoiding returns).

Large Tech Companies as an Exception (and a Cautionary Tale): Tech companies with subscription models are presented as the closest real-world example of the "monkey scenario." They generate massive revenue with minimal additional service, making it difficult for customers to cancel subscriptions. This illustrates the power of recurring revenue but also hints at potentially less ethical practices.

Relevance to the Pulp and Paper Industry: The article acknowledges that the primary audience (pulp and paper industry professionals) cannot mimic the tech company model. They require strong processes due to the nature of their goods and services.

Importance of Process Auditing: Even with necessary processes, the article stresses the need for regular audits to eliminate obsolete ones, ensuring efficiency and continued focus on the main objective.

Constant Reinforcement: The author concludes by emphasizing the importance of frequently reminding oneself and others of the "spin the invoice printer" objective as the "path to your source of thriving."

II. Quiz

Instructions: Answer each question in 2-3 sentences.

1. What does Jim Thompson mean by the phrase "spin the invoice printer"?
2. Why does Thompson consider the invoice printer "the most important machine in any business, government or charity"?
3. According to Thompson, what is the primary pitfall of many management gurus?
4. How can a lack of clarity regarding the "invoice printer objective" be particularly dangerous for those early in their careers?
5. What is the "ideal business" scenario described by Thompson, and why is it ultimately impractical?
6. How do large tech companies, according to Thompson, come closest to mimicking the "monkey scenario"?
7. Why does Thompson state that readers in the pulp and paper industry "can't get off as easily as the large tech companies"?
8. What is the recommended approach for processes, given that they are necessary for most businesses?
9. What is the author's final advice regarding the "invoice printer" objective?
10. How does the author's editorial calendar relate to the topic of his article on "spinning the invoice printer"?

III. Quiz Answer Key

1. "Spin the invoice printer" means successfully generating an invoice demanding payment, which symbolizes the ultimate objective of any business: to receive revenue for goods or services provided. It represents the crucial act of financial transaction and sustainability.
2. Thompson considers the invoice printer the most important machine because without the ability to produce an invoice and demand payment, a business fundamentally ceases to exist. It is the direct mechanism for converting goods or services into revenue, distinguishing a legitimate enterprise from less acceptable collection methods.
3. The primary pitfall of many management gurus, according to Thompson, is that they become excessively focused on and "wrapped up in the process" itself. They often fail to clearly state or keep in mind the ultimate objective, which is to "spin the invoice printer" and generate revenue.
4. A lack of clarity regarding the "invoice printer objective" can be dangerous for early career professionals because it leads them to become overly process-oriented. They might lose sight of the business's core purpose and even mistakenly believe that the act of generating revenue is "beneath them."
5. The "ideal business" scenario described is having only an invoice printer and a trained monkey to operate it. This is ultimately impractical because such a business would likely face numerous returns and allowances, indicating a lack of quality control or customer service necessary to sustain operations.
6. Large tech companies come closest to mimicking the "monkey scenario" by generating invoices for subscriptions at high volumes (hundreds of thousands or millions per month) with minimal additional service. They make it difficult for users to cancel apps, effectively ensuring recurring revenue streams with little ongoing effort beyond not turning services off.
7. Thompson states that readers in the pulp and paper industry "can't get off as easily as the large tech companies" because the nature of their goods and services (physical products) necessitates more complex processes and quality control. Unlike app subscriptions, physical goods require more intricate production and service delivery.
8. For most businesses, particularly in industries like pulp and paper, processes are necessary. However, the recommended approach is to occasionally audit these processes to identify and eliminate those that have become obsolete, ensuring they remain efficient and aligned with the objective of generating revenue.
9. The author's final advice regarding the "invoice printer" objective is to remember it constantly, bring it up often, and even write it on the walls. He emphasizes that focusing on this objective is the fundamental "path to your source of thriving."
10. The author's editorial calendar relates to the topic by illustrating how he, too, sometimes deviates from established processes (the calendar) to focus on a core principle. On five-Monday months, he liberates himself from the calendar to write about fundamental truths like "spinning the invoice printer," mirroring the need for businesses to occasionally break from routine to re-evaluate core objectives.

IV. Essay Questions

• Analyze the central metaphor of the "invoice printer" in Jim Thompson's article. How does this metaphor effectively convey his message about business objectives, and what are its strengths and potential limitations?
• Thompson argues that many "management gurus fail" by focusing on process over objective. Discuss the implications of this statement for organizational efficiency and employee motivation, particularly for those early in their careers.
• Compare and contrast the business models of large tech companies with the pulp and paper industry as presented in the article. What unique challenges and opportunities does each face in "spinning the invoice printer," and what lessons can they potentially learn from each other?
• The article suggests that businesses should regularly "audit our process and eliminate those that have become obsolete." Elaborate on the importance of this practice for long-term business success, considering the potential risks of failing to do so.
• Beyond the literal act of invoicing, what broader principles of business management and strategic focus can be derived from Jim Thompson's insistence on "spinning the invoice printer" as the ultimate objective?

V. Glossary of Key Terms

Editorial Calendar: A schedule or plan that outlines the topics or themes for editorial content (e.g., articles, columns) over a specific period, often used to coordinate with advertisers.

Spin the Invoice Printer: A metaphorical phrase used by Jim Thompson to represent the ultimate objective of any business, government, or charity: to successfully generate an invoice and receive payment for goods or services, thereby ensuring financial sustainability and success.

Invoice Printer: The actual machine or, more broadly, the system responsible for generating invoices, symbolizing the core function of revenue generation for an organization.

Management Gurus: Individuals widely recognized for their expertise and advice on management principles and practices, often influencing business strategies.

Process Oriented: A mindset or approach where individuals or organizations become overly focused on the steps, procedures, and methodologies of an activity, potentially losing sight of the ultimate goal or objective.

Objective: The ultimate aim, goal, or desired outcome of an action, process, or organization. In the context of the article, it is "spinning the invoice printer."

Trained Monkey Scenario: A hypothetical ideal business model described in the article where a "trained monkey" operates the invoice printer, representing an extremely simplified and automated revenue-generating process with minimal human intervention.

Returns and Allowances: In a business context, these refer to products or services that customers return, or price reductions granted to customers due to defects, damages, or dissatisfaction, which reduce actual revenue.

Large Tech Companies: Refers to major technology corporations, often characterized by subscription-based services (e.g., apps) that generate recurring revenue streams, as highlighted in the article.

Pulp and Paper Industry: The industry involved in the production of pulp, paper, and paperboard products, known for manufacturing tangible goods and often requiring extensive physical processes.

Process Audit: A systematic review or examination of an organization's operational processes to evaluate their efficiency, effectiveness, and adherence to established standards, often with the goal of identifying areas for improvement or obsolescence.

Source of Thriving: The fundamental origin or basis of an individual's or organization's success, prosperity, and well-being. In the article, it is linked to consistently achieving the objective of "spinning the invoice printer."

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