Specifically Geared for Business Leaders, CEOs, CFOs, Owners and Board of Directors
A refresher to allow you or a colleague to PRUDENTLY take greater risk to scoop up some of the opportunities underway. Why, prudently? Because, unfortunately this is an evergreen topic which too ma ny organizations only remember or learn after very expensive costs.
Growth missions and goals cyclically go out from on-high like "Grow from 80 to 100 million dollars". Add or subtract a zero for the size of your organization. The CEO meant grow AND add profitable business with at least the gross margin on existing business so the bottom line swells to newfound levels of prosperity.
Laugh or cry based on what version of this you have seen or heard about. Personally, I still hear leaders ( including board members) and employees commiserate about how their former 30-, 100- or 800-million-dollar organization makes less money after toiling to reach their revenue goal.
Grow profitably sounds simple, basic and even American Apple Pie simple. Until communication and execution challenges occur, as always happens.
Remember what happens? One or more things like:
- Sales and business development hear sell, not sell profitably.
- The incentive plan is not updated to reward profitable sales for all departments, whose support is needed.
- An acquisition adds revenues with bottom line losses.
I stop at three past examples, all of which I have seen (and some more).
Forewarned, your organization can eliminate these 3 major problems inexpensively.
- Make sure the strategy soundbite mandates sales at existing or better gross margins.
- Update the incentive plan or bonus structure for the new strategy.
- Shine the spotlight a little brighter on the proposed M&A target.
Any company – large or small – can benefit from this self-reflective process, whether the current focus is new business, sustainable profitable growth, governance, risk assessments or enterprise risk management. It may add back-pocket value or all businesses, including family businesses, private and public businesses, and equity group investors, including:
- Corporate directors, key committee chairs and board chairs
- Corporate officers and C-suite executives
- Shareholders, stakeholders, regulators, and legislators
About Fiscal Doctor Inc.
FiscalDoctor Inc. enables growth through leverage you did not know you had and works with leaders to uncover million-dollar opportunities or holes to make the best business decisions and dramatically accelerate correct fiscal leadership decisions. This helps leaders regain control of their financial destinies and capitalize on hidden high return opportunities, while limiting exposure to risk.
He can also help increase your profitability, providing access to 100 best-of-business experts who are often better and cheaper than incumbents. Visit his website at http://www.fiscaldoctor.com and "free" fiscal fitness test at http://www.fiscaldoctor.com/fiscal-quiz/ , or call 678-319-4739.
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© Gary W. Patterson. ###