Power Positions & Focused Management Drive Earnings!
Robust Earnings Are Foundational To Long Term Success!
“The earnings difference between one company and another are the nickels and dimes rolling around the floor.” Denson Parker
Staff Financing Strategy
Utilize Limited Dollars for Employee Growth & Maximum Earnings Impact!
Evaluate All Staff
Review compensation in all areas of the business with focus on core philosophy to pay less employees more per employee.
Assess All Management
Gauge ratio of management to staff positions with eye on flat structure with fewer managers, more lead staff, value proposition of each.
Outsource Non-Core Staff
Review management and staff for higher performance, lower cost options using 3rd party specialists, particularly in management positions.
Reward Great Performers
Reduce overall payroll costs relative to sales while increasing wages or bonuses of high value, or extremely productive staff.
Evaluate All Vendors & Purchases!
Be Prepared to Review & Change Any Vendor, Product or Process!
Materials & Services
Evaluate every material and service essential to your business looking for opportunities to achieve lower costs whether through changing products, vendors, or processes without sacrificing quality.
Supplies & Overhead Materials
Tighten approvals for ordering all overhead or supply items. Evaluate each item for opportunities to attain lower costs or eliminating unnecessary purchases. Be open to changing any vendor, any product, any process.
Look for opportunities to consolidate vendors or form new relationships to achieve lower costs in exchange for expanded sales. Vendors may have ideas to change products or procedures for cost savings.
Emphasize Operational Efficiency!
Create A Culture of Speed, Productivity, Rewarding for Outstanding Effort!
Review all operational positions for opportunities to consolidate functions, automate processes, build software applications to eliminate or automate processes. Figure out how to analyze an employee function using technology and common sense to increase their productivity.
Review visually physical employee movements and workflow for adjustments to expand output. Evaluate information flow for each employee for redundancies, inefficiencies, and deficiencies. Look for opportunities to use software tools to speed functions, reduce delays and improve information flow.
Customer, vendor, inventory, order, and other information should only be handled once and subsequently be available for access electronically without necessity of manual processes or printed documents.
Across the organization, utilize custom software applications and database information built to automate employee processes increasing speed and accuracy relying more on software, database information and less on employee knowledge.
Work with equipment suppliers to analyze opportunities for automation utilizing updated technology. Evaluate cost/benefit info to compare depreciation versus reduced staffing costs. Focus on generating more revenue per employee.
Collaborate with business partners to provide outside perspective analyzing all facets of operations seeking innovative best practices to streamline procedures. Effort should be concentrated on eliminating unnecessary work and reducing hours per dollar of revenue.
PRINCIPLES INCENTIVIZING PROFITABLE RESULTS
Connect Financial Outcomes to Management & Employee Income Rewards!
Sell Power Positions
Focus sales and customer service efforts to promote power positions.
Are you selling a commodity or are you using your niche position(s)?
Reward Sales Results
Link new client sales and customer retention performance to income through commissions and/or bonuses for results-oriented incentive systems.
Establish Department Goals
Set goals for all business departments driven from strategic power positions. Monitor goal progress and require accountability for performance.
Incentive Profit Motive
Build bonus programs for management and offer employee profit-sharing tied to base company operating income level. Adjust rewards upward based on increased income results.
“Increasing overall profits is accomplished by improving many small things one at a time.”