This newsletter will focus on providing insights on how to increase profit margins and performance without making any new capital investment. I call this finding your True Profit™.
The Unified Theory of Profitability
We need to change the way we think about increasing profitability in our organizations. It isn't just about raising prices or continuously cutting costs or adding new sales people.
We need to be able to better leverage the assets we already have, and turn compliance departments into revenue generators. Cost centres into profit centres. The visual below lays out the new mindset for organizations.
Here are some specific examples of what I mean:
Can you train your customer service representatives to offer customers new products and services once they have resolved a customer's issue?
Have you developed something for internal use that can be commercialized (an IT system or a tool)?
Can you build stronger partnerships to increase value from your relationships with suppliers?
Can you develop your account managers to focus on growth with their assigned customers?
These are just a few examples of how to increase profitability without cutting costs or making any new capital investments.
Have an Idea or Topic You Would Like to Hear More About? Send it to me.
Many of you have shared some great ideas with me and I am always for more. Don't hesitate to contact me with topics and themes you would like to read more about.