What is the path for Objectives and Measures to boost profits? Brian Tracy claims that only “the companies that provide excellent product(s) with excellent service at profound excellent prices will survive” these turbulent times. It is true that different businesses will require different types of measurements which could all possibly be under one or more of the there umbrellas: Operations, Financing and/or Administrative. What dimensions do you need to re-evaluate to focus on what is most important? The objective is to deliver the highest value while optimizing your profits.
I will offer that to move to profits upwards, you will have to start with a solid strategy which should be clearly stated on your “Mission Statement.” You should then define what avenues your business will follow to best serve your customers or clients. The big word, to your path to profits, is the specific and measurable “Goals” that you penciled down. Do not forget the measures and checkpoints to ensure that you will meet the completion of the goals head on. Have you envisioned the results? It will be easier to see their mark when you will receive the acknowledgement from your customers or clients for the slue of benefits that they have received. Completing this journey will translate to profits; the ultimate state of business success.
Are the demands on your time unbearable? Definitely! Do you wish to have more time to review one or more of the above steps? Definitely! It is critical to have the ability to set time aside. Ask how is your business fair on any of the above steps to profits. Are you moving to the right direction considering your current trends? What is new and not considered on your original plan or changed and in need of adjustment? Businesses find gaps on one or more of those steps above, consistently. Owners who react with energy and urgency to fill the gaps have the advantage to bigger profits.
Rest assured that while measures can be set and followed to measure external results and internal processes, the panoramic goal requires the strategic alignment of all departments, even thought the measures can be conflicting if set at the ground level and not from the bigger point of view. The rule should be all measures to be aligned for total value and profits. Your objectives should bring your business strategy clarity and focus to fulfill your Mission Statement. Wouldn’t you agree that excellent product, service and price will optimize value and manifest in excellent customer satisfaction which in return will provide you with high levels of loyalty?
If you, like most business owners, consider profitability your second major objective you understand that your revenue should be higher than the total costs and thus focus a great deal on controlling costs and increasing productivity. If you apply all your assets towards viable profitable opportunities reaching for your set target percentage, your business will enjoy not just growth but profitable growth.
Objectives and Measures are geared to increase customer value. Be alert and make the changes. Continue to refine the systems as needed as you go along; keep analyzing business decisions and measures of profitability; rest assured that increasing customer or client value will enable you to enjoy a boost in your profits. That is why objectives and Measures can boost profits.
Remember – Just Say No to the Status Quo TM
Creating your best profit solutions is my highest priority.
Donna Marie Thompson, PhD
Donna Marie Thompson, PhD is a Small Business Profitability Expert and Founder of Expert Profit Solutions. She is a two-time best-selling author who has spent most of her career problem solving in international management consulting.
Donna Marie has helped businesses meet their profit targets under challenging circumstances. She was a Director at PricewaterhouseCooper's Consulting, and has worked at Booz Allen, as well as local consulting firms. This wide range of experience in businesses of all sizes uniquely qualifies Donna Marie to guide small businesses to discover their hidden profit potential.
Donna Marie earned a PhD from George Washington University, an MBA from Virginia Polytechnic Institute, a CPA in the state of Maryland, and is a Master Practitioner of the Energy Leadership Index.
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