The 2019 Return on People Benchmark Report has just been released, with important implications for your competitiveness. The average Return on People has increased by 25% in the past year for the second year in a row – have your profits been keeping pace with that kind of performance, or are you getting left behind? Is it finally time for a roadmap to safely and sustainably improve profitability beyond what you are doing today? I can help.
Download your copy of the Infographic and find out how YOUR industry has performed. In the meantime, I’ll give you a sense of what the Return on People Benchmark means for your business.
What’s Return on People?
First of all, let’s define Return on People – a rarely-used KPI based on calculating Profit per Employee that’s a direct measure of productivity AND competitive advantage because it measures how well you turn talent into value. I’ve been tracking this metric for well over 10 years, and the insights are always invaluable.
- Wouldn’t you love to know why Procter and Gamble earns 1.5x the profit per employee of Colgate?
- Or why Caterpillar earns almost twice the profit per employee that Cummins does?
- Or why once-great GE has lost its mojo and is now losing almost $80K per employee per year, while upstart Fortive, with a very similar business model is generating $121K of profit per employee?
- And wouldn’t you love to know how YOU can join the high-performing companies by going beyond business as usual?
Seeing just how high the bar has been raised by some of the largest companies in the world is a great catalyst for setting your own bar higher and building a proactive Profit Roadmap to achieve more, without defaulting to the typical approaches of slashing costs and growing revenues by chasing any business with a pulse – there are horror stories in the Benchmark that show exactly what can happen with those outdated approaches, and there’s a much more sustainable, safer approach that delivers results.
Unless you’re exceeding the benchmark return for your industry, it’s time take a different look at the systems and processes you have in place to ensure you’re optimizing revenues (not all revenue is GOOD revenue) and eliminating all of the small, subtle profit leaks above AND below your gross margin line. Profit leaks include:
- Doing “bad” business with customers who cost you more than they’re worth (but no, you don’t have to fire them)
- Leaving money on the table because you’re not sure how to price for value (there is a way to know how, and then create win-wins for you and your customers that have nothing to do with just slapping on a price increase, especially in highly competitive markets)
- Incurring the costs of issue escalation, problem resolution, and subsequent reworks or compensation.
- Profit leaks also include the high costs of:
- attracting new customers
- losing business to a competitor
- being leapfrogged by a competitor with a better idea
- inefficient processes and procedures that slowly but surely drain the life-blood from your company.
- and more!
Do these challenges sound familiar? The solution is having a systematic way to give you confidence that you’re:
- doing profitable business with every customer
- maximizing overlooked opportunities to do more good business (every business has them, including mine!)
- eliminating unnecessary costs from your system that shouldn’t even be there (without dramatic cost-cutting)
- pricing for value and not leaving a penny on the table
- differentiating from your competitors AND staying ahead of them when it comes to new value-add products or services.
Think that’s impossible? What it takes to realize these possibilities are exactly what I’ve perfected (the hard way) during years of successful turnarounds, and in the profit work that I’ve done with clients for the past 19 years. My approach is light years away from conventional accounting approaches (you’ve already got a competent CFO who helps you with those, right?), and takes a customer-focused, people-centric, and profit-powered approach using a proven system that delivers results. My clients typically see a significant increase in Return on People within just a year or two, and that’s what I want for you – whether we work together or not… Download your complimentary copy of the 2019 Return on People Benchmark and follow the instructions to understand where you are at today… and where you could be.
Because it’s not really about profit. It’s about the possibilities and potential in your business that profit makes possible.
How Can You Benefit Immediately From the Sharp Uptick in this Year’s Return on People Benchmark?
There are numerous ways, but let me just share 2 of them here:
- Effectively reach out to your customers for new opportunities – not just with sales pitches, but by finding new ways to serve them. If their profits are increasing, then they have money to invest with you in products and services that deliver value. It’s not unusual to see a sawtooth pattern in each company’s ROP as they invest in positioning for growth. Many made BIG investments in 2016 and 2017 – in people, in technology, and in acquisitions. If those were your customers, you may be well positioned for success as many of them will be ready to invest again when you focus your sales messages on delivering value that helps them drive growth.
- Re–evaluate what your ROP should be, and build a plan to leap one full grade within the next year, because if your competitors were the ones making the investments over the past couple of years, there may be trouble on your horizon. That’s why some companies hugely outperform their competition, even in the same industry! Continuing to do what you’re doing today is unlikely to create a quantum leap. The work that I do engages every employee to focus on profit within their span of control, in a way that’s highly engaging and rewarding for them. We all like to win – when you show them how they can play a bigger role within your organization in less time per week than they’re spending on email per day, you trigger some pretty amazing leverage.
84% of companies will score a C, D, or F on the Return on People Benchmark, and low scores are a powerful catalyst for transformational change when your people decide they want to be the best. The best companies are transparent with their scores, but if that’s not your corporate culture to share profit data with employees, simply reach out to me, I’ll show you the Plan B to engage them.
The Two Next Steps You Need to Take Today
Step 1: Download the Return on People Benchmark Infographic, benchmark your current state, and commit to achieving a higher grade in the coming year. Don’t see your industry? The Benchmark focuses on manufacturing, but reach out if you want the data for your industry – I’ll be happy to share it with you.
Step 2: Take action. On September 1, I’ll be opening 5 places in ProfitU™ for 2020 – is it time for YOUR company to take one of them? It’s the proven in-house, online-learn-by-doing system that shows you AND your team exactly how to implement the P.R.O.F.I+T Roadmap in just 90 minutes per week – less time than every person spends on email every day! You’ll be fully supported and mentored by me after a live, game-changing workshop where you and you ream rank your customers on profitability with an innovative, intuitive approach that gets everyone onside to improve profits in the blink of an eye. I work with you at no charge for the first 30 days to find the money to pay the fee, so that you’re never out of pocket, and provide my “Whatever it Takes” Guarantee, which is unique in the industry.
What have you got to lose by finding out more? ProfitU may or may not be the right fit for you, but why not schedule a 30-minute call – not so I can give you a sales pitch, but to talk about your current ROP status and profit challenges. I guarantee that whether we decide to work together or not, you will leave our call with at least 1 actionable strategy or tactic that will impact your bottom line. If it makes sense for us to work together, I’ll send you further details – no obligation.
99% of business leaders have good intentions but fail to take action. Will you break the mold and increase your Return on People?