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In This Issue
15 Ways to Increase Profit With No Capital Investment

Increasing Profit Through Strategy Execution

Events
I will be speaking for the Speaker Series @ Rotman in Toronto on February 11. Click here to register and for more details.

I will be speaking at the Financial Executives International (FEI) annual conference in June in Winnipeg. Click here to register and for details.

Tools and Resources

My colleague and friend Volkmar Volzke has been generous enough to offer his new free video series to my readers. His three videos on how to build and execute powerful business strategies will change the way you approach strategy and execution! Click here to sign up.

Take my assessment that will determine your organization's True Profit.

Click here to order my book, Redefining Operational Excellence: New Strategies for Maximizing Performance and Profits Across the Organization.

 

Edition 3, January 2015
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Andrew Miller

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.

 

No Investment Required

Many of you may remember the album "No Jacket Required" by Phil Collins. The theme of this article is, No Investment Required. The best way to increase profitability is to do it without having to make any new capital investment.

So that we can all start the year off the right way, here are 15 ways to increase profit without making any new capital investment.

  1. Accelerate the development of your strategy and focus on its execution.
  2. Train your customer service and call centre representatives to be well-versed in your product and service offerings so they can offer them to customers who call with an issue.
  3. Work with all employees who interact with customers and teach them basic rapport-building skills.
  4. Build stronger relationships with key suppliers and distributors.
  5. Teach current customers how to be brand ambassadors to help attract new customers to your organization.
  6. Implement a formal way to manage the idea process within your organization in order to maximize the impact of your best ideas.
  7. Look to partner with other organizations with the same customer base that offer complementary products and services.
  8. Host a special event for your best customers and prospective customers.
  9. Increase your prices.
  10. Have your employees volunteer for a high profile charity event or local community event.
  11. Develop a new service offering that would be valuable to your current customers.
  12. Find out what your customers expect and meet those expectations. Scale back on what you are doing that isn't necessary. There is no need to over-deliver.
  13. Identify the most effective way you have attracted new customers in the past and focus your efforts there.
  14. Find ways to bring on new customers faster.
  15. Empower your front line people to make decisions in the best interests of the organization.

I could come up with 50 more, but this seemed like a good start. Maybe I'll come up with 15 more in next month's Margin Call.

You don't need to implement all of these, so pick one or two that will have the greatest impact and move forward. I would love to hear about your journey in implementing some of these ideas.

Increasing Profit Through Strategy Execution

In the article above, I suggested that one of the ways to increase profit without making any capital investment is through focusing on strategy execution. Here are five ways to ensure the successful execution and implementation of your strategy:

  1. Ensure your strategy can be communicated in a simple, concise way (We want to be the #1 energy savings company in North America).
  2. Ensure people understand what is expected of them in order to help achieve that strategy. Execution begins on the front lines of your organization.
  3. Give your employees the freedom to make decisions based on common sense and good judgment. This becomes much easier when they clearly understand the direction of the organization and their role in helping the organization make progress (see 1. and 2. above).
  4. Implement a performance management system that rewards the outcomes and behaviours you want, not just the completion of activities.
  5. Be prepared to abandon tactics that are not helping you make progress towards your strategy, no matter how ingrained they are in the organization.

So how does this impact profit? Because your people are now focused on the right tactics. Those tactics that will most rapidly and effectively achieve your objectives. Everyone is focused in the same direction and understands their role. That leaves plenty of time available for focusing on growing profitability.

Have an Idea or Topic You Would Like to Hear More About? Send it to me.

I am always looking for new ideas and topics to cover so please don't hesitate to contact me with topics and themes you would like to read more about.

Please note that we grow our business through referrals and would never be too busy to speak with a friend, family member, acquaintance or colleague if you think we could be of assistance.

Please contact Andrew Miller at 416-480-1336 or visit our website at www.acmconsulting.ca

Please feel free to forward this newsletter to anyone to whom it might be of value.

© Andrew Miller. All rights reserved. 2015.