Growing Profitably Today and Tomorrow

Transcription

1 Growing Profitably Today and Tomorrow Change Faster. Grow Faster. Dan McHenry Business Advisory Group Practice Leader, McHenry Consulting, Inc We must change faster than our competition, clients and business. - an excerpt from a Mark Sanborn quotation

2 Ben Franklin Timeless Lessons When you are finished changing, you are finished. -Benjamin Franklin 2

3 The Framework of Our Discussion Let s Start Our Talk Today by Illustrating Three Different Points on the Time Continuum Understanding where you were Understanding where you are Understanding where you are going to be Illustration a courtesy of the President s Council 3

4 Characteristics of a Soon to be Extinct PEO The 7 Deadly Sins Are Alive and Well in Business 1. Gluttony 2. Pride 3. Lust 4. Envy 5. Wrath 6. Sloth 7. Greed 4

5 Seven Deadly Sins Examples of PEO Seven Deadly Sins Group Exercise This illustration is an example of one of the seven deadly sins and is a fictitious character. Can you guess which one? Give some examples of PEO Seven Deadly Sins?

6 Characteristics of Future Top Performing PEOs Live Long and Prosper The Best PEOs in the future will have: Adaptability Agilibility (aka agility) Profitability Scalability Sustainability 6

7 Adaptability You can t build an adaptable organization without adaptable people You were born to win, but to be a winner, you must plan to win, prepare to win, and expect to win. - Zig Ziglar, American author, salesman and motivational speaker ( ) Adaptability Attributes Flexibility Confidence Tolerance Empathy Positiveness Respect for others Versatility Resilience Vision Attentiveness Competence Self Correction 7

8 Agilibility The Big No Longer Beat the Small, the Fast Now Beat the Slow Agilibility Create focus Communicate a clear vision of the future Hire the right people Set an example Enhance autonomy Plan for the unexpected Implement continuous innovation Create a motivating purpose Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion. - Jack Welch, former CEO of General Electric 8

9 Profitability Profit or Perish. There are only two ways to make money. Increase revenues and decrease costs. NAPEO Avg 5% Price Increase 5% Price & Prod Increase 5% Price & 10% Prod Increase 10% Price & Prod Increase Gross Profit 1,300 1,365 1,365 1,365 1,430 Salaries & Fringes Other G&A Profitability Per WSE Total OpEx 1,050 1,050 1, Op Income NAPEO 5% Price 5% Price & Prod 5% Price & 10% Prod 10% Price & Prod. Excerpts from 2016 NAPEO Financial Ratios (Rounded). 9

10 Scalability To be successful, you have to have your heart in your business, and your business in your heart Scalability Build a solid foundation Focus on scalable solutions Embrace strategic planning Focus on your core strengths Be patient Courage is being scared to death, but saddling up anyway. - John Wayne, Legendary Actor 10

11 Sustainability Built to Last Sustainability Clock building, not time telling More than profits Preserve the core, stimulate progress Big hairy audacious goals (BHAG) Cult-like cultures Try a lot of stuff and keep what works Home grown management Good enough is never enough Indeed, if there is any one secret to an enduring great company, it is the ability to manage continuity and change a discipline that must be consciously practiced, even by the most visionary of companies. - Jim Collins, Author of Built to Last: Visionary Companies 11

12 Adaptability Examples of PEO Adaptability Group Exercise Give some examples of PEO adaptability?

13 Agilibility Examples of PEO Agilibility Group Exercise Give some examples of PEO agility?

14 Profitability Examples of PEO Profitability Give some examples of how PEOs can improve profitability?

15 Scalability Examples of PEO Scalability Group Exercise Give some examples of how PEOs can be more scalable?

16 Sustainability Examples of PEO Sustainable Group Exercise Give some examples of how PEOs can be more sustainable?

17 Session Takeaways What Can You Do? As you leave this conference today, what things can you do to improve your company by: 1. Making your company more adaptable? 2. Making your company more agile? 3. Making your company more profitable? 4. Making your company more scalable? 5. Making your company more durable and sustainable? 17

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