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Improve Profitability by Focusing on Reporting, Relationships, & Resources


Companies are like sharks. When they stop moving, they die. You may not realize it, but right now your company is either improving or its heading in a downward spiral. There simply is no in between.


So, if you want to avoid the death spiral and improve, focus on three critical areas.


1. Reporting. Sounds so simple and to some so boring. Or maybe you already have a ton of reports. But what story are those reports telling you? If you can’t answer, they you are not using reporting effectively.


This is either because you have the wrong reports, or you are not sure how to interpret them. Companies that use reporting effectively are not just able to measure past performance. Their reporting also enables them to predict the future, identify industry trends, test different options, manage and motive employees and so much more.


2. Relationships. Most leadership teams are not functioning at a high level because of the relationships within the team. And this is not just limited to the obvious two who do not get along. Insecurities within individuals lead to “cover up” behavior that leads to division within a leadership team. Getting team members to act and perform from a position of confidence and authenticity is a challenging but necessary task if a team is going to be high functioning and effective.


Beyond the internal company team, relationships are also important with both customers and suppliers. So often there is communication with these two groups, but not a highly effective relationship. If there is constant negotiation between your team and your vendors and customers, then this is an opportunity for improvement.


3. Resources. Think of resources in three key buckets, Human, Systems, and Financial.


A. On the human resource side, does your organization know how to get excellent talent into the company. This includes, recruiting, interviewing, hiring, on-boarding, and retaining the talent needed to achieve the desire results. So many companies struggle on the human talent front and then wonder why they miss achieving their goals.


B. Systems (often software) are a key tool to enabling quality work. Some companies have too few and others have bit off more than they can chew. In either scenario, if the systems are not being used and/or useful, then they are not adding value.


C. Financial resources are an obvious need, but still create a lot of stress. Do not let financial needs sneak up on you. Stay on top of them and manage them proactively.


You have a successful company. Congratulations! But don’t fall into the trap of believing that you can just hold steady. Industries, customers, competitors are all changing. If you are not continually improving, you will find yourself and your company struggling. Focus on these three areas and you will find ample opportunities for growth.

About Jason Stern: Mr. Stern started Gift of Time to provide a cherished resource “time” to business owners and executives. By focusing on the critical areas that lead to results, business people avoid wasting time. His firm www.giftoftime.us works with companies and their leaders to become more effective in less time. He can be reached at jstern@giftoftime.us or 949.244.1885.

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