Implementing Profit Plan: The Good, The Bad, The (O)X - Wendy Dickinson

Wendy Dickinson - "Catalytic Conversation$"

Introduction
What will happen to your business next?  
I invite you to consider what your intentions are for the future of this company.  The answer to this question matters in leading yourself, others on your team and in your family, to the ideas that you all generate, as well as to the RESULTS – PROFIT from each.  
Identify the  strengths, weaknesses, opportunities and threats of each element of your dashboard.  I recommend that your dashboard contain metrics that are financial ( costs, cash, income), from operations (supply chains, logistics,), marketing and sales KPI’s, and finally, the people components.  Believe that each are the essential elements that go into making decisions for the future of your company, your family and for you.  
By the end of our time together you will have used this one hour to assess, align, and develop action steps to turn a profit, increase your profits and to invest your profits.  

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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. 

So, today’s show is the execution of your profit plan – the good, the bad, the (O)X we believe are vital to the business’ successful progression – and reading that dashboard to collect the data you need to decide where to adjust, renegotiate, course correct or pivot in your operations, sales, human resource or financial plans.  

Key Issues - ​Owners Perspective
Vision matters.  Identify what it is you hope to accomplish during this stage of growth and development in the company.  Next, identify the same for yourself as a private citizen.
 

• Determine alignment
• Work to shift both visions/versions into alignment

 
You need that vision.  Next, you need to know what your dashboard is telling you and what each of the metrics means for the company and for your leadership.  The family business I mentioned has not been able to approve a budget this year.  

What You Need to Know
Every Stage 5 company, with a talented owner, has a vision to deliver the best product or service in their industry.   (Vision, mission, purpose right there!)
 
Next, that owner would need to step forward to lead ideas.  At this point, I recommend scenario planning using strategic foresight.  Or, in other words, let’s play the “what if” game – 

1. Sell the company? To acquire market share, talent, IP, IT systems, etc.
   1. What are the implications of each?
   2. What are the implications for the (O)X?
2. Reinvent?
   1. What would that mean for you?
   2. For the business?
   3. How would that add to your (O)X?
3. Where does each scenario overlap?
   1. Intersect?
   2. Shine a light on biases. (Action? Paralysis?)
4. Generate ideas.
   1. Predict results.
   2. Identify blind spots & knowledge gaps.
   3. Seek out the opinions of others.  

What You Need to Do

• • Marketing: did you make your goals?  Note the gap (margins).  How do you account for the gap between the goals and the actual outcome?
  • Sales?  Same questions.
    • What needs to happen to achieve the goals?
    • What objections, obstacles, and unexpected reactions appeared?
  • Service? Same questions.
    • Is the problem still accurately stated?
    • Is the service the perfect fit for that problem?
  • Production?  Same questions.
    • How could you become the lowest cost producer?
    • Look at variable, fixed and tail spend margins.
    • What products are profitable?
    • Which aren’t?  Why?  When?
  • Human Resources? Same questions.
    • And, how can you nurture talent?
    • How do you fill your pipeline with prospects?
    • How does your compensation compare with others in your industry/positions?
  • Lifetime value of each customer/account:
    • Acquisition costs
    • Retention costs
    • Buying patterns
    • Profile updates
    • Determine current profitability of each account
    • Segregate the top 10% (assign more resources?) and the bottom 10% (fire these customers? Raise their prices? Discontinue lowest revenue products/services)
• Leadership of Results
  • Look at dashboard & metrics as the current reality.
  • Identify signals, signs and hazards that you see.
  • Interpret each and determine appropriate action.
  • Course correct to avoid the pitfalls and upcoming hazards
  • Course correct to leverage opportunities, strengths within your market share, production, talent, and fixed or variable costs structures 

Shows

• Previous: EPISODE E5.001 WORKING ON THE BUSINESS - STAGE V
• Next: Episode E5.003 (O)X Pruning Fixed Costs for More Than Pennies

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