Overall economic optimism suggests that you and your team should be having a bigger better year this year. You’ve set goals to achieve higher sales, increase profitability, and finally land that big new account. New product launches and updated marketing strategies are on the drawing board. You’ve got lean initiatives to increase productivity, increase efficiency, and reduce waste. Perhaps you’re investing in automation or other technology. And so on. Sound familiar?
Most leaders will fail to achieve significant progress on any of these goals. Their energy is scattered in the whirlwind of everyday business, rather than a single critical goal that aligns everyone’s energy and resources behind achieving it.
Setting your sights on one clear goal and mobilizing around it doesn’t mean all those other good things go away. But aren’t they really just part of business as usual? You’re not doing anything wrong. It’s just that you need to do something different.
Something big enough, exciting enough, and defined enough to capture everyone’s imagination and engage them in being part of the solution… and deliver tangible bottom line results.
They were losing almost $10,000 of profit per employee per year, and were looking at the conventional alternatives – downsizing, layoffs, restructuring. The problem is, they had aggressive growth plans to expand across North America, and you can’t shrink your way to growth. They needed profit… because growth consumes cash they didn’t have.
The Profit In Plain Sight Solution:
According to the CEO, the wake up call that started their transformation came from Benchmarking themselves on the Profit-per-Employee results in their sector. They saw that other manufacturers were achieving an average of $29K of profit per employee. All of a sudden, the status quo was unacceptable, and their competitive spirit surfaced in a hurry. Contact me if you want access to the Benchmark numbers for your industry, as the 2018 Profit Per Employee Report is about to be released – watch for it in an upcoming newsletter.
Next, they started to implement the Profit Roadmap that I taught them, which has nothing to do with downsizing, gouging customers, driving revenues at all costs and slashing expenses. Instead, they got strategic about creating customer value, and eliminating costs that shouldn’t ever have worked their way into the business.
Their Profitability Results:
Within 2 years, they had turned that $10K loss into profits of $26K per employee. And a year later, they’d taken their results to an industry-leading $31K per employee.
Profitability is the applause you receive for creating great customer value. And this firm earned a standing ovation.
Is it time for YOU to implement a proven Profit Roadmap and earn YOUR standing ovation?