Great Products & Service Don’t Mean Great Profits

Great Products & Service Don’t Mean Great Profits

Too often business owners are very proud of the products and services they bring to market. Their customers love them. Their employees get along and believe they are doing great work. Then, when they add it up the profits aren’t there, the cash isn’t there, and they wonder what’s missing.

To get it right and make money:

  1. Make sure your Business Processes are crafted and tight for your efforts. Do not fall into the trap of thinking that you are too busy or it’s too complicated. Those are excuses…Get it done! If you don’t know how, get help!
  2. Help your Managers be effective by having them in the right places. Generally, people that are very good at a narrow discipline should be kept there. People that have more general expertise are those that you want managing overall Business Processes. They can more readily see how things fit together. Having someone do an objective assessment of everyone’s role responsibilities and talents is a good place to start.
  3. Monitor the Key Metrics. You can’t watch everything. You MUST pay attention to those departmental metrics that cost and make you money. Too often, business owners watch the wrong things. So, find out what matters. Variance analysis against the best of the best in your industry is a good place to start. Get it done!
  4. Have effective meetings on the “specific actions” you are taking to get the Key Metrics in line.
  5. Tie Pay for Performance Plans to the Key Metrics. In this way you will make your people want to manage the processes, instead of having to manage the processes. The difference allows you to grow.

After a long career in the corporate and small business world, Mike Cefola is the Regional Director for Partner America. A native of Pittsburgh, Mr. Cefola spent most of his career building new sales organizations and fixing those that were under-performing. Since joining in 2004, he has provided help to over 700 small businesses.