Telus announced a 10% hit to their profits as a result of closing their Black’s Photography stores. Having worked with Clearnet (purchased by Telus in 2000) I’m pretty sure I know what their next move will be, with Darren Entwhistle back at the helm following the abrupt shift in responsibilities of CEO Joseph Natale. It’s what almost every business leader has been taught to do when confronted with a profit dilemma: drive relentlessly to increase revenues, and cut costs. Sound familiar?
But simply looking at profit isn’t enough (says the gal who wrote the #1 Bestseller Profit in Plain Sight). There’s a bigger issue for Telus, related to a number few business leaders ever track: Return on People. Telus is at the bottom of the barrel compared to their Canadian competitors… and well below the industry average.
So what the heck is Return on People and why does it matter? The technical calculation is based on Profit per Employee, i.e. Net Income divided by the number of employees, but the significance is that Return on People is a direct reflection of how well a company turns the talent of their greatest ASSET (people, who walk in every morning, out every night, and choose to either engage or disengage) into VALUE that customers are willing to buy.
Each year, I create a comprehensive Return on People Benchmark Report. When clients and attendees see how they compare to others on the Benchmark and share that with their employees, it often ignites a passion to “be the best”… like one manufacturer who knew they were losing almost $10K of profit-per-employee, but only seriously got motivated to improve their grade to the average after seeing the Benchmark. The result? They took their profit-per-employee to over$27K in about a year – a four-fold increase! Your firm, and Telus, could similarly ignite a passion for excellence amongst your people by learning how to use Return on People as a driver for success.
Download your complimentary copy of the 2014 Return on People Benchmark Report and find out whether you’re an A, B, C, D, or an F. Then, shatter your speed limits, set the bar higher, and achieve results you never thought you could with the extra resources you’ll find in the Report.
What’s YOUR grade on the Benchmark Report? And more importantly… what’s your Profit Plan to take it to a new level?