I have a very simple question for you...
Look at the following 2 numbers. They are among the most important figures of your business.
15% - 50%
This is the range of your percentage increase in your operating margin if you duplicate most of the strategies of the top global companies.
Each year hundreds of companies improve their margins by 15 to 50%.
So here's the question...
Why wouldn't you be part of these?
Seriously... Why wouldn’t you be part of the 15% - 50% club?
Last year, why didn't you get a margin increase by 15 to 50%?
This is a very important question and from your response will depend your profits for the current year and those to come.
I will now show you how these companies over the lot reach such increases - and what you need to do to get the same thing.
Most is, of course, to cut all costs, but this is the result of a process.
The process is the systematic elimination of all waste in all processes (design, procurement, production, sales, after-sales) whether they are goods or services.
To remove them, you have to tackle the first of them: the underutilization of intelligence, initiative, creativity, the passion of those who "like" your business on the first rank of which, your employees.
As soon as you’re aware of this huge wastage you’ll get motivated to take actions in order to remove it and to ensure that each stakeholder has desire to give the best of himself.
To do this, structure a framework of consistency, a unifying and motivating project explaining the 3 components:
- Vision for the future: the mission, ambition and values of the company
- The system of progress for action: principles to guide, organizations to involve, tools for action
- The product/market strategy for growth
This project must be built with all and particularly the team management who will be responsible to make it alive on a daily basis.