Paul Wants To Improve Bottom Line
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Paul, the company president, seeks to improve the bottom line through a comprehensive management system rather than solely cutting costs. He proposes analyzing marketing and sales processes for inefficiencies and applying improvement methodologies like Kaizen and Six Sigma to enhance revenue. While acknowledging the challenges of implementation, Paul believes in fostering a culture of ownership among employees and considers engaging external firms for effective results.
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Paul Wants To Improve Bottom Line
- 1. Paul is the president of the company He wants to improve the bottom line
- 2. Paul asked one simple question: What should we do to improve the bottom line?
- 3. The Finances people answered: Cut in personnel and Supply chain costs Lower purchasing prices and inventory levels Cut in publicity and R&D expenses Lower receivables by involving the sales force in the collection process In fact, there are many more areas we could improve by cutting or lowering After all, there is a recession out there!
- 4. HR could receive more complaints and notice more sick days Suppliers could have more back orders and defects, creating manufacturing delays. Sales people would have less time to sell because of collection and problem solving The total sales income would go down Rumours could start getting around A general ‘’I don’t care attitude’’ could start to emerge Yes the expenses would go down, but
- 5. The Marketing people answered: Increase the Advertisement budget Increase the R&D budget Invest in Benchmarking, more focus groups and surveys Invest in new internal communication tools The Sales people answered: Increase the sales force by employing new representatives Create a new inside sales department Invest in a new software for better reporting Improve the commission and bonus program Invest in a training and motivational program The same question was asked:
- 6. If Paul would have listened to everybody This is what could have happened!
- 7. Of course this a simplistic dramatisation B u t n o t s o o f f t h e w a l l , b e l i e v e m e!
- 8. Paul had a better idea! Paul wanted to turn things around, in a fully coordinated management system.
- 9. Paul thought of a new approach The improvement and quality approaches like Kyzen, Six Sigma, could also be applied to Marketing and Sales Reducing costs is essential, but it is also very profitable to focus on revenue growth! A well-structured revision and improvement of working methods in Marketing and Sales can only increase revenues and profits.
- 10. Paul wants to: Look into the Marketing and Sales departments to get a snapshot of the present situation, by mapping out the: Processes & Systems Look for duplications, inefficiencies and wastes. Start by applying improvements into the most important areas, where it will generate the greatest returns. (Pareto’s 20/80 approach) B U S I N E S S I N T E L L I G E N C E
- 11. Paul knows that: WHAT GETS MEASURED GETS DONE ! AND WHAT CAN BE MEASURED CAN BE IMPROVED !
- 12. ‘’ Good common horse sense’’ Paul did not want to rely only on:
- 13. Paul knows that this is not Rocket Science! But when all of these actions are put in place, it will bring back the returns.
- 14. Paul also wants to get Everybody involved To transmit the knowledge of the approach so that everybody takes the ownership to guaranty the implantation’s success.
- 15. Everybody smiled and looked at Paul
- 16. Good Idea Boss! But everybody has too many things to do… We don’t have the time!
- 17. Or Worse Everybody would say:
- 18. Ok boss! You can count on me! But since everybody has too much to do Nothing would get done! ANYWAY
- 19. Sounds familiar? THIS IS WHY THERE ARE EXTERNAL FIRMS SPECIALISING IN IMPROVEMENT, IMPLEMENTATION & RESULTS
- 20. P R O A C T I V E M A N A G E M E N T B U S I N E S S I N T E L L I G E N C E B U S I N E S S R E – E N G E N E E R I N G WORKING TOGETHER WITH YOU TO CREATE GROWTH
- 21. JUST LIKE LAWERS AND ACCOUTANTS, REINGENEERING FIRMS ARE: Experts in their field 100% dedicated at achieving the results, fast. Not slowing down your daily operations Available just when you need them Able to bring a wide expertise from other projects 3 for 1 return on investment
- 22. B U S I N E S S I N T E L L I G E N C E for Marketing & Sales It works ! Matrix Dashboards Analysis Mapping ROI Management system Web surveillance Information flow Marketing strategy Mobilisation Product launch Process System Behaviour
- 23. Writen by: Normand Béïque Vp partner at Quotient Marketing [email_address] GROWTH CREATING