EPISODE E5.002 Implementing Profit Plan

Introduction
New week, same perspective with greater conviction.

After being attentive to the weekend news about the continued arbitrary government response to COVID19, there is only one course for the business owner - ignore their word salad of concern and work around it. 

Being passive and waiting for the right decision will put you out of business. There are only two ‘people’ who have that right - you and the customer.

IBGR is committed to your success and our programming is for legal aggression (OK, I’ll make it nicer - assertiveness) to open, stay open, and be profitable.

Unlike the rest of society - we have your back.

Listen>Apply>Engage
​
Show Objectives
Today's working ON the business as it's Chief Executive is not about adding more information or techniques, it is about focus, attention to detail, and execution. 

Key Issues - ​Owners Perspective
Indecision:

• no clear end game for the future of the business or;
• inability to act quickly - sell or start Reinvention Planning

Stage V is a momentary stop and leads to decay of the business. Decisions about the future should have been made earlier (Stage III) and executed.

What You Need to Know

• EPISODE A5.002 ANALYSIS OF STAGE IV PERFORMANCE
• EPISODE B5.002: IMPLEMENTING OPERATIONS STAGE V PLAN - BECOMING LOWEST COST PRODUCER
• EPISODE C5.002 AUDIT AND TOP GRADE ALL ACCOUNTS

What You Need to Do
1. Capacity Results

• Based on your Stage III estimates in Marketing, Sales, Service, Production - how close did you get in each area?
• If you didn't reach 90% of the goal, what are the potential reasons for Marketing, Sales, Service, Production?

2. Margin Results

• Based on your Stage III estimates in Marketing, Sales, Service, Production - how close did you get in each area?
• If you didn't reach 90% of the goal, what are the potential reasons for Marketing, Sales, Service, Production?

3. Fixed Costs Results

• Based on your Stage III estimates for back office operations - how close did you get in each area?
• If you didn't reach 90% of the goal, what are the potential reasons for each of the back office operations?

4. Based on results, Upgrade the "AS IS", not create another "TO BE"

• Using the last Process Improvement - turning that "TO BE" into "AS IS", apply the information gained from the gaps between Capacity, Sales, Support goals and results.
• Modify the "AS IS" to incorporate data from Stage IV analysis to make changes that don't require another round of process improvements;
• Incorporate improvements in your Business Sale Portfolio, include position as Lowest Cost Producer (or ranking)

5. Top Grade All Accounts

• Determine or review lifetime value of each account. Purchases per year X estimated time as a customer = ?
• Review buying pattern over the last year. Up, Down, or Flat with rationale for the pattern.
• Estimate or determine share of wallet and chart it over time. How much of this account do we service vs the competition and how has that changed over time?
• Determine current profitability of account - includes product & service buys. Chart profitability over time and match purchases to the profitability of products and services.
• Rank order accounts and indicate the top and bottom 10%. Top 10% to receive added focus, more sales support, potentially upgraded or new offer, potential collaboration partner. Bottom 10% - raise prices, discontinue products and services, create a different offer to reduce costs and make the account more profitable.

Shows

• Previous: EPISODE E5.001 WORKING ON THE BUSINESS - STAGE V
• Next: Episode E5.003 Improve Profitability from Fixed Cost Operations