Burnarounds: Unlocking The Double Digit Profit Code

Achieve Double Digit Profit

For years I have been turning single digit profit companies into double digit. For years I didn't think double digit profit was unusual. Well it is-unless you are in pharmaceuticals, or oil. I recently doubled the size of a company while moving it into, and keeping it into double digit earnings. Don't believe the myth that as a company grows it becomes impossible to maintain double digit-it becomes harder, but it is definitely possible.

One thing you have to do for sure is be creative in how you employ your company's assets. Don't just grow by product development or by finding new customers for existing products. Utilize ALL your assets. Many people overlook the value of their channel. If you have a strong channel, find other companies with great products that can be sold by you through your channel. Your channel is probably your greatest double digit ally. Use it.

Burnarounds start with language

One of the key elements of a burnaround, is to start burning around the edges of the company. A great place to start is with language. If people at the fringes of your company (i.e., the field sales offices, the dock workers in the factory) are using language that is harsh, vulgar, rude, etc. then this is the place to start your burnaround. How people feel about themselves, each other, and the workplace begins and ends in language.

I once took over a business that had a factory full of people who regularly hurled obscene insults at each other. This language was commonplace and rooted in the culture for decades. How can a factory perform at high productivity if the culture is rooted in such language? I mandated an immediate zero tolerance policy for vulgar language. Read: you will get fired if you use it, even once. Now I am not talking about "hell" or "damn", I am talking about the harsh, vulgar kind. As you would expect, the employees tested me within a day of my proclamation. The first person got fired. The next day we fired 2 more. The 4th day another one. I was beginning to wonder if when the dust settled if I would have anybody left in the factory!