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One theme consistent in Season 3 is the station's becoming your CGO - Chief Growth Officer for Hire, the underlying role of the Network. All of my shows: Growth Community, Building in Front of You, Your MLM Empire, Economics for Owners, the Self Managing Organization, and Creating a Consulting Business - everything centers on how to use the IBGR Network for business success.
Our relationship with the listening audience of entrepreneurs and owners:
That is what is meant by Looking at IBGR as your CGO - your virtual Chief Growth Officer.
Last week we tackled Clarity on Your End Game. It was to bring into focus where this business is headed and does it have a future after you and if it does - what is it. This week we make the End Game into a Game Plan and convert an aspiration into daily action.
LISTEN > ENGAGE > APPLY
Objectives - The WHY
The only accurate measure of business performance is profitability, not revenue. It doesn’t matter how much money flows in; it is all about what is left in the cigar box. If it is true about you as the owner why should it be different with anybody else. Tie all of your compensation to how people impacted the amount of money left in the bank.
Don't be fooled by the latest attempts to turn capitalism into something it's not like the Great Reset. We operate our businesses in a market of voluntary relationships with mutually agreed upon exchange of value.
Why not apply that mindset internally to the business and compensation? Here is your primer to get started: Salary is a recruiting tool, Benefits are a retention tool, and if you want performance - Pay for it.
Let that sink in. How many times have you been unhappy with an employee that works at the same level after getting a pay raise? A salary increase has a momentary positive impact (a week or two depending on your pay period) and then is taken for granted. As for benefits, its impact is to create golden handcuffs making it difficult to leave. Neither of these have any real impact on performance.
Key Issues - Owner Perspective:
What You Need to Know - The WHAT
Ready for another shock? All compensation systems work! You just don’t like the result. Why is that true? People will do what you pay them to do even achieving unacceptable results because it was designed badly. The chance for mistakes are lowered when pay is based on how people contribute to business success. Get this right and figuring how to reward them is easy.
Get everybody into the game, the great game of business. Most people work in environments where they are forced to bowl with a sheet over the lanes. Imagine the only feedback you receive is noise without knowing how many pins were knocked down or where? And where do you throw the second ball? Why are you the only person losing sleep at night because the company is not performing? Share the load.
What You Need to Know - The WHAT
Here are three Quick Tips for Tying Compensation to Profits.
The challenge is most small business owners don't understand which customers or products / services are generating the most profit. If this is true for you - start here:
You are still not sure this is the most profitable customer or product / service, but you have attacked the area of the greatest profit potential. Next step is to determine where the greatest contribution to the business can be made by position or step. This is the core of your compensation system:
There are some issues about how to measure I will leave for later Shows. The last issue for creating a Pay4Performance system is linking what they do to what the company needs - giving them a piece of the budget:
We are your single, one stop source for business success, period, end of story.
Make sure you leave some thoughts in the comment section below. I am interested in continuing the conversation.
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All IBGR Shows Notes are available for download