Profitability

Case Study: How to Earn a “Standing Ovation” for Profitability

It’s the time of year when most business leaders and their teams look forward with optimism to a bigger better year. They resolve to achieve higher sales, increase profitability, and finally landing that big new account.  New product launches.  Better marketing.  Having more on the bottom line to show for all their hard work.  Capital expenditures that will help them grow.  Becoming more efficient.  And more.  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.

ReSolutions are Good Intentions; ReVolutions are Imperatives for Profitability.

Setting your sights on one clear goal and mobilizing around it doesn’t mean all those other good things go away.  But they’re part of business as usual.

Instead, a ReVolution is big enough, exciting enough, and defined enough to capture everyone’s imagination and engage them in being part of the solution.  Here’s what one building manufacturer achieved when we were still in the throes of recession:

Background:  Despite an aggressive growth plan that had created locations across North America, they were losing money – and not just a little bit, but almost $10,000 per employee.  Imagine going to your employees at the end of the year and telling them that they’d spent the whole year working for less-than-free for your customers!  Growth eats cash.  So, they benchmarked themselves on profit-per-employee, and set a revolutionary new goal, far higher than anyone could previously have imagined.

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 $31K per employee.  NOT by downsizing, NOT by gouging customers, NOT via the usual process of simply trying to drive revenues and cut costs, but by getting strategic about creating customer value, and eliminating costs that shouldn’t ever have worked their way into the business. 

Profitability is the applause you receive for creating great customer value.  And this firm earned a standing ovation.  

What will YOU do to create ReVolutionary profitability in 2017?

 

#1 Bestselling Author, International Speaker, and Accelerator Anne C. Graham is on a mission to help 5 million business leaders and their teams double their profit per employee – or more – in less than one year, in less time per week than they’re spending on email per day. Her new book Profit in Plain Sight includes the 5-step proactive P.R.O.F.I+T Plan to do it.  Connect with Anne on Twitter and LinkedIn.