9 Steps to a Better Bottom Line

profit

How to Improve Your Bottom Line

In the last several years, businesses have faced smarter competitors, continual change, technological innovations, and uncertainty.

It seems more difficult than ever to both grow the top line of a business and the bottom line, too.

That’s the challenge that Dr. Dorriah Rogers, CEO of Paradyne Consulting Works, takes on.

From her work with some of the most complex projects and organizations, Dorriah has developed a 9 step program to grow net profit. After reading her new book Decide to Profit: 9 Steps to a Better Bottom Line, I asked her to share more about her research and experience.

 

“The man who removes a mountain begins by carrying away small stones.” –Chinese Proverb

 

Tell us more about the 9 steps and how you arrived at them.

The 9 steps are the result of many years of implementing various profit-focused solutions and systems across many different types of industries and companies.  At one point in my consulting career, a senior executive (almost, but not quite) jokingly asked me if I could develop an “Operations Manual” of all the tools I had at my disposal.  That was the genesis of the 9 Steps.  From there, I kept refining the steps, making sure they were interrelated, and asked for real-world feedback from my clients, until I had it down to a system as simple as I could make it.  I wanted to create a process that was not overly complicated to understand or use, and I wanted to create something that both managers making decisions and employees wanting to make an impact could readily implement to help their companies improve profitability.

 

“Whenever man comes up with a better mousetrap, nature immediately comes up with a better mouse.” –James Carswell

 

Identifying the system that needs improvement seems straightforward, but it isn’t as easy as it sounds. What if you can’t seem to identify which one is off course?

Agreed.  It is not simple to get started.  And that is why so many of my clients struggled.  They either focused on too many improvements or the wrong ones.  In many cases, most managers and employees inherently know where they need to start, or in what general area, and that is as good a point to begin with as any.  It may not be as tight a starting point as you might want, but the 9 Steps will help to define and clarify if it is the right place to focus your attention and resources as you progress.  Keep in mind that a “system improvement” could be as big as an entire corporate overhaul (like the Lego case study in the book) or as small as an internal vendor payment process.  The idea is to find those things that are impacting your ability to make money.  So the first place to start is to discuss internally which things are impacting your ability to generate profit.  Not revenue, but profit. 

Companies have a choice: keep doing what you’re doing and make incremental (or no) improvements to your bottom line, or tackle your best estimate of the system within your organization that could potentially have the biggest impact on profit.  You might start out with the wrong one, but the beauty of the 9 Steps is the iterative process built into it.  Along the way (and fairly soon) you will realize that the system you chose to improve might not be the right one because it is NOT positively impacting your financial goals, and the steps will prove that out for you through the ROI process.  At that point, you simply readjust, and the 9 Steps will guide you closer to those areas that will have the biggest impact.  So in short, start somewhere and the 9 Steps process will get you where you need to be.

 

“Creativity is thinking up new things. Innovation is doing new things.” –Theodore Levitt

 

Beware the Expert Loop

What is the expert loop and how does it often cause problems?

The expert loop was first coined by Alex “Sandy” Pentland in his November 2013 HBR article entitled “Beyond the Echo Chamber.”  In it, he posited that within organizations only a handful or individuals are viewed as the experts and the only ones who are capable of making important decisions.  I agree with his conclusions that, in fact, seeking information outside of this expert network is often much more valuable.  Time and time again I have seen the phenomenon of top executives sitting in rooms with the same small group of people as they rehash both problems and ideas in a tired, circular rhythm. The same ideas are beaten to death, and the same people are heard.  Even when new people are brought into the conversation, their ideas are often dismissed or even scoffed at as the experts re-establish their positions of authority at the top of the food chain. The problem this creates is twofold: a lack of true innovation and the stifling of a culture of continuous improvement.  While it is true that experts should (and do) have great ideas, it often requires a fresh perspective or a dissenting voice to shake things up and move the company in a new direction.  Some of the best ideas I have ever heard have come from the most unexpected voices.

 

9 Steps to Improving Your Bottom Line

  1. Identify the system that needs improvement.
  2. Put the right team together.
  3. Identify the goal.
  4. Observe the system.
  5. Identify bottlenecks within the system.
  6. Brainstorm.
  7. Select optimal solutions for improvement.
  8. Implement one change at a time.
  9. Sustain a culture of continuous improvement.

 

Unlock the Power of Brainstorming

7 Hidden Obstacles to Success

trapped in a maze

7 Traps

Anyone can change the trajectory of their life, at any stage of their life.

In Trap Tales: Outsmarting the 7 Hidden Obstacles to Success, David M.R. Covey and Stephan M. Mardyks share seven traps that prevent us from achieving our potential. As the authors share each trap, they share escape routes that will help you increase your happiness and potential.

I recently spoke with David Covey about the book. David is co-CEO and cofounder of SMCOV and cofounder of ThomasLeland. (Yes, he’s also the son of one of my favorite leadership and success gurus, Stephen R. Covey, who wrote the 7 Habits of Highly Effective People.)

 

“Live out your imagination, not your history.” -Stephen R. Covey

 

What is Trapology?

Trapology is the study of traps and more specifically the study of the 7 common and modern traps (contained in our book Trap Tales) that people fall into in life and work.

 

4 Characteristics of a Trap

How do you spot the traps before you’re ensnared? What are the characteristics of a trap?

You can’t spot traps unless you are aware of what potential traps are out there. We often describe traps as “hidden” because we can’t see them—we stumble upon one and fall in it before we realize it is a trap. So, our book, Trap Tales, is a story of Alex, who has fallen into each of the 7 traps. This provides awareness of the 7 common and modern traps our society faces today.

There are four characteristics of the trap:

  • Seductive—A trap lures you in unknowingly.
  • Deceptive—Short-term gratification leads to long-term pain.
  • Sticky—Like quicksand, a trap is difficult to get out of once you fall into it. It requires an unconventional approach to get out and stay out.
  • Limiting—A trap holds you back from progressing towards your goals.

 

I want to ask about just a few of the traps. The money trap. What is money myopia and why is it so dangerous?

Money myopia is society’s unhealthy emphasis and focus on making money and placing money at a higher level of importance compared to our family and relationship. We see everyone else out there with more money than us, and we attempt to copy or mimic what we see them doing. We start to believe that the whole purpose of life is primarily about money, accumulating more money and showing off all the money we have.

Money is important, but it is secondary to our family and relationships.

 

Success Tip: filter out the unimportant. Detach from Minutiae. Learn to say no.

 

Understand the Power of Delayed Gratification

How to Set and Simplify Business Strategy

stand out strategy

Making Big Decisions Better

All organizations are faced with decisions. What to focus on, what to invest in, how to get to there from here are all common questions when approaching strategy.

I’ve read many books on strategy. There are many that are theoretical. I enjoy them and think about the implications. But there are a few that are actionable. As a CEO, I can use aspects of them immediately. That’s what I found when I read Tim Lewko’s new book, Making Big Decisions Better: How to Set and Simplify Business Strategy. Tim Lewko is the CEO of Thinking Dimensions Group, and his book goes right to the core of setting strategy that you can implement immediately.

I followed up with him to discuss his new book and his strategic work.

 

“Strategy is decision-making.” –Tim Lewko

 

Develop a Common Definition of Strategy

Why is it problematic that most of us don’t share a common definition of “strategy”?

Not having a common definition of strategy creates all the problems CEOs, executives, managers and people who want to make their mark are trying to avoid in the critical areas of:

Purpose

Growth

Profit

 

What are some of the common misconceptions about strategy?

The list could be quite long but I will share the top three that trip up firms in setting a quality strategy—and that are easy to fix if the CEO and leadership chooses to. They are:

  • EUREKA – It’s a magical idea that just comes to you
  • SINGULAR – One person holds the key to the great idea
  • BYPASS SWEAT EQUITY – Outsiders can tell you the answer and it should work

 

“Cause is king for sustaining results.” –Tim Lewko

 

Be Wary of Outsourcing Strategy

Why is it often problematic to “outsource strategy” work?making big decisions better book jacket

There are many large successful firms that come and provide the “answer” that shows up as a long set of PowerPoint slides – and this prescriptive approach is the choice for many CEOs.  However, the approach which I practice is process based – where we bring a proven strategy system that “forces tough tradeoffs” and leaves them in a better place because they created the strategy and understand how to modify the choices as events fold.  This process approach helps to avoid the problems associated with outsourcing strategy including:

  • DEFAULT on sweat equity – missing out on working through, understanding and deciding the key things that matter from EXTERNAL and INTERNAL standpoints
  • TOLD WHAT YOU ALREADY KNOW – in my experience, clients already know 85% of what’s holding the business back (outsiders may give you 60%) so why pay for what is already known?
  • DELAY or DESTROY BUY-IN – if you outsource strategy, you have already short-changed your ability to implement the strategy – because you have side-stepped the most important people – your executive team and workforce who need to intimately understand the why behind the PRODUCT, MARKET and CAPABILITY choices that are being made. Sure, a great CEO communication or town hall helps to sell the outsourced strategy, but deep down those closest to the issues feel side-stepped – and it takes an awful lot of time to get them to buy in to something that is not theirs.

 

“Unwarranted complications are killing strategy in organizations.” –Tim Lewko

 

Have a Visible Process for Strategy

How Personal Experience Shapes Executive Presence

confidence

 

Are you leadership material?

How do you become influential?

What are the qualities of executive presence?

 

Most of us want to increase our influence, but many don’t know where to start. There are behaviors that influence others, and there are ways to increase your leadership presence.

Diana Jones brings three decades worth of experience in leadership development and packs it into her new book, Leadership Material: How Personal Experience Shapes Executive Presence. Diana is a leadership coach, advisor, and relationship specialist. I recently spoke with her about her research.

 

“Leaders with executive presence seamlessly blend personal experience with their professional identity.” –Diana Jones

 

The Professional and Personal Are Linked

“It’s a myth that a leader’s personal qualities must remain separate from their professional identity.” You share a story of an awful tragedy and how you kept that private during a leadership retreat. Tell us more about the intersection between the personal and professional.diana jones

The core premise of my work is that leaders personal and professional identities aren’t separate. They are inextricably linked. Leaders have been fooled into thinking that being impersonal and rational leads to success. It doesn’t. Poor engagement and alienation results. Without personal qualities, leaders are faceless bureaucrats, and their staff find it difficult to connect with them. Our experience of being with any leader is greatly influenced by their personal qualities.

My book deals with leaders’ professional identities. By thoughtfully choosing what is personal, what is private, and what they let come to the foreground in their interactions, leaders influence how others experience them. I coach leaders to bring helpful personal qualities into their interactions. Leaders with personal qualities like contempt, demanding, and cold create anxiety and emotional turmoil around them. People don’t like working with them. Leaders with personal qualities such as being insightful, approachable, and succinct have powerful effects in inspiring others to action.

The secret in my book Leadership Material is that if you don’t know who and what has shaped you as a leader, you won’t be able to lead people. The key lever for developing as a leader is through your earlier life experiences. By uncovering the likely source of unhelpful behaviors, you then have a choice of your current authentic response which builds relationships and produces results.

 

“When people feel understood and accepted, they flourish.” –Diana Jones

 

Successful Leaders Share Personal Stories

When do you share?

Successful leaders share their personal stories. They do this to:

  • Inspire teams to connect around a shared purpose, direction, or action
  • Let others know how to work with them

Staff hear and experience the leader’s authenticity, and there is shared understanding. This draws people to those leaders.

Leaders build trust by letting their boss and peers know how they think and feel about important matters.

 

“Up to 70% of a team’s climate is determined by the leader.” –Hay Group Research

 

How much is oversharing?

The #1 Thing that Should Keep Leaders Up at Night

leaders up at night

Find the Katherines

 

Katherine Coleman Goble Johnson turns 99 years young this week.

She was born August 26, 1918. Her life has been nothing short of extraordinary. No one could have predicted her success when she born in White Sulphur Springs, West Virginia, the youngest of four children. Her father worked various jobs at the Greenbrier Hotel. Her mother was a teacher. As a young girl, she loved to count and showed a strong interest in math. Her abilities were recognized, and she entered college at fifteen and graduated at eighteen.

Starting her career as a teacher, she later moved to work at the Langley Memorial Laboratory at NASA.

As an African American woman in the early 1950s, she began to break one barrier after another. She overcame considerable sexism and racism, distinguishing herself through her work ethic and genius in the field of analytic geometry.

Her early work led to the discovery that larger planes disrupt air currents and can cause smaller aircraft to crash long afterwards, bringing a change to flight patterns and saving lives. She famously worked on the calculations that helped bring Senator John Glenn back from the first American orbital mission.

Senator Glenn trusted her over the first IBM mainframe computers. He wouldn’t okay the mission until Katherine okayed the math.

From the moon landing to the Space Shuttle program, Katherine was there, making an impact on it all.

All this extraordinary history, and Katherine’s struggles and triumphs, is beautifully told in Hidden Figures: The American Dream and the Untold Story of the Black Women Mathematicians Who Helped Win the Space Race, a book by Margot Lee Shetterly. (If you haven’t read the book or seen the movie, put them on your must-read and watch list! It documents a shameful period in history, but one that must be remembered. I found it incredibly inspiring to demonstrate the inherent evil, bias and prejudice we must always fight against.)

 

“The greatest talents often lie buried out of sight.” -Plautus

 

Learn from Katherine’s Extraordinary Career

So, on her 99th birthday, we can learn many lessons from her career success:

  • She learned continuously.
  • She cultivated her unique gifts.
  • She lived on the edge of her comfort zone.
  • She demonstrated courage in the face of racism and sexism.
  • She overcame others’ false, negative perceptions.
  • She trail-blazed thinking and challenged tradition.
  • She broke barriers mathematically, socially, and academically.

No wonder she received the Presidential Medal of Freedom in 2015. She not only contributed to the USA’s success in space, but her courage, tenacity, and determination changed people, perceptions, and processes all along the way.

Amazing.

 

 

“Katherine knew: once you took the first step, anything was possible.” –Margot Lee Shetterly

 

The Leadership Lesson Behind the Story

But there’s something else that strikes me as I reflect on her lifetime of achievement. It’s something that, as a leader, no one tells you about in school or in classes. It’s something that, as a business leader and CEO, I ponder quite a bit.