All business leaders today are looking for ways to decrease costs, while increasing productivity and profit. Many businesses today are taking a one time profitability boost by reducing costs at the expense of the employees.
Cost cutting always seems to be the first action taken by companies as they try to increase their profit. I understand that some businesses are in trouble and this may be their only recourse. However, many businesses rely on this cost lever rather than looking at all the other options available to increase profitability.
Most people know that Henry Ford was quite famous for piloting the assembly line factory and for increasing the productivity of his factories. But did you know that he was able to simultaneously increase profits while decreasing production costs, increasing productivity, and increasing employee’s wages?
The book review for this week is Profit First by Mike Michalowicz.
Michalowicz introduces a new and unique way of managing the financial side of your business. Rather than running your business using traditional GAAP based reporting, he introduces an approach that keeps the business owners focused on profits not on Revenue, SG&A or COGs.
His point is that profit is not an event . . . Profit must be baked into your business every day, every event, every transaction. The best way to do this is to build a system that puts profit first and not GAAP accounting (although the accounting still must happen). Michalowicz lays out a simple but powerful system that does this.
We have all heard it said that people are the most important asset your business has. In fact, it is said so much that now we have become somewhat numb to it!
Do we really believe this? Are people truly the key to your organization’s success? What about innovation or leadership or cashflow or customers?
According to Tom Peters in The Excellence Dividend there are seven steps to sustaining success. These seven steps start with taking care of your employees. If you can take care of them and treat them with excellence, they will address all the other components of an excellent business!
Most organizations are bleeding away profit through holes they don’t even know they have!
That’s right! If you are not periodically and systematically looking for inefficiencies, gaps, old processes, or broken systems, chances are, your business is bleeding profitability.
These holes that are bleeding profits from your organization are generally not a result of a deliberate or malicious act. They just form slowly as the marketplace shifts and as technology changes. These shifts and changes create holes that must be “fixed” in the same way a pothole in a road must be fixed!
There are literally billions of emails sent each day and many of them are simply not needed and result in “make work” projects. This is a huge productivity drain on your business!
According to a Washington Post article the average worker spends 4.1 hours per day doing email while this Forbes article suggests 2.5 hours a day per person for email!
If you have 50 staff working for you at an average cost of $50/hr and they are each wasting 2.5 hours a day on email, you are losing $6,250 dollars a day. This is $31,250 a week or $1,625,000 a year just because you don’t have better systems in place for business email!
So, what can you do about it?
Here are 12 tips that you can implement in your business to stop the email madness and reduce the flow of money down the drain!