Intro: Profitable Growth is everyone s business: 10 Tools you can use Monday Morning written by Ram Charan

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Erick Sherman
6 years ago
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1 Intro: Profitable Growth is everyone s business: 10 Tools you can use Monday Morning written by Ram Charan Profitable growth needs to be the ultimate goal of every business. Sometimes company leaders get lost in REVENUE growth at all costs, especially, if these companies report to Wall Street. For the small business owners that are responsible for production, profitable revenue growth becomes elusive. Money hides mistakes and Ram will show some high level concepts to detect this. 1

2 Why is this important to me? Profitable growth is every business owners concern. If you are not a business owner but an employee, then you need to understand that profitable growth is EVERYBODIES business. This can help your career because I can tell you that from an owners perspective, when ENGAGED employees focus on profitable growth then good things happen and those employees get rewarded. This book can help you in your business or your career. There are four questions that can help your business and should be asked of the people in the organization. On a scale of 1 to 10: 1. What are you doing to help your customers prosper? 2. What is the quality of your sales force in shaping and customizing a unique value proposition for your customer? 3. How effectively is your pricing tied to the attributes the customer most highly values? 4. In every interaction with a customer, how well do your people extract information about customer needs? 2

3 Ram describes and details 10 tools for revenue growth. For the sake of time I will point out the 3 I feel are most important in my humble opinion. 1. Revenue growth is everyone s business, so make it part of everyone s daily work routine. This is a slight edge behavior that can compound to huge results if the energy is channeled correctly. This also requires financial education of your team. They need to be able to read and understand simple operating Profit and Loss statements. Each department of the business should have revenue responsibility and a monthly scorecard that is shared among the team. Focusing daily is the real game changer. Think about this for a moment. A.2% daily improvement equates to a 44% annual improvement assuming 220 working days. If you can consistently do this then over a period of 5 years, your results go through the roof. 2. Hit many singles and doubles, not just home runs. Consistent, great companies understand this concept. They know that every product, customer or engagement is not a home run but if they deliver consistently then they can attain great results over time. This one complements the slight edge daily routine described in number one. In order to gain.2% daily advantage then you do not need to hit home runs all the time. According to Gallup, organizations with engaged employees are 4 times more profitable then organizations that have disengaged employees. 3

4 3. Seek good growth and avoid bad growth. This one is near and dear to my heart because I have lived through it in my own business. Our best revenue year, we attained BAD growth. This meant that profits were down, we had too many people and the systems did not support the numbers. I could write a book on how important this one concept is. To relieve my listeners of that headache I will just reiterate one important fact Infrastructure is money. Make sure your company infrastructure can handle the growth and you will not be chasing growth with overhead. 3

5 Overall the concepts in Ram s book are solid and his experience speaks for itself. I tend to interject some personal experience in some of these videos to try to drive home the points in the book. If you have any questions, please don t hesitate to ask. Just ping me in . This book provides a great framework to get started. I hope you have found this short video summary useful. The key to any new idea is to work it into your daily routine until it becomes habit. Habits form in as little as 21 days. One thing you can take away from this book is the daily work routine concept. Think in terms of daily improvements in any area of your life and you will be shocked how far ahead you will get. The results are staggering. If you enjoyed this video then please do not hesitate to pass it along and if you want more detail then click on the link below and purchase Ram s book Profitable Growth is Everyone s Business Thanks for watching and have a great day! 4

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