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

Why Values and a Purpose are Vital for Leaders Today

purpose

Matthew Snider is a writer, a personal development junkie and a regular blogger at Self Development Secrets, a blog to help you achieve your goals. For more tips like these, I encourage you to visit his site.

Have you worked under someone who was so assured and stood their ground that no matter what happened, he or she knew what mattered? Then you’ve probably worked with a leader who has strong, unshakeable values. It’s not about the money, recognition or power. These values that drive them are something bigger. Finding your purpose is one thing. Finding it as a leader is an entirely different subject. It’s not about emulating other successful leaders or key figures in the industry; it’s about identifying your real values in life, knowing that this gives you a definite purpose for making the tough decisions as a leader. Let’s go about finding out how these things can be so vital to being a better leader.

 

The Making Of A Better Leader

Making decisions is what leaders do. They get paid to make the tough calls. But what’s more important are the values of a leader. It gives the team consistency and stability. What I mean by that is this: having a set of values will give a team a direction, a company culture, and adds some meaning to the work that is being done. All these start from the top, the leader, and flows down to every level. Now every leader has their values, and they can differ from one to another. Two good leaders can have completely different values. So what exactly is a value and how does it help one become a better leader?

 

“Great people have great values and great ethics.” -Jeffrey Gitomer

 

What Are Values?

Values are what is important to us—in other words, what we value, or the thing that drives us. People will have certain core values which help shape them into who they are today. The same values can also be different for everyone. For example, if two people value love, they can show it in very different ways through their actions or vocally. It’s sad to think that even though we all have values, when it comes to working, we tend to adopt the values we were taught to follow. Unfortunately, these values can hurt us, and it’s not something we would like to associate with our real values.

 

The Purpose Of A Leader

Harvard Business Review states that based on the author’s understanding, less than 20% of leaders have a strong sense of individual purpose. These same leaders can tell us the mission statement of the company, but they lack the sole purpose that makes them stand out as a leader. It doesn’t matter if you’re the CEO of a multi-million-dollar company or told to lead a small team of three, your purpose is what makes you, you. It’s your why: why you’re working, why you want to lead the team and more. That’s the difference between leaders, and a good leader has an ultimate purpose. This is why some leaders get remembered and acknowledged long after they’re gone.

 

How to Find Your Purpose?

How to Manage to Make a Difference

make a difference

Make a Difference

If you’re a new manager, you may find yourself in unfamiliar territory faster than you can imagine. How do you handle the gossiping employee? Or the top performer about to jump ship? How do you develop a high-performance team?

Larry Sternberg and Kim Turnage have literally packed numerous tips, strategies, tools and techniques for managers into the pages of their new book, Managing to Make a Difference: How to Engage, Retain, & Develop Talent for Maximum Performance. I recently spoke with Larry about their new work.

 

“We can change the world and make it a better place.” -Nelson Mandela

 

Why Employee Orientation is All Wrong

Your book starts out saying that we have employee orientation all wrong. We too often start with scare tactics and explaining what will result in termination. What does this do to new employees?

Frankly, the gratuitous negativity turns people off. The new employer is building the case for termination on day one! Also, it’s just plain boring. Negative and boring are not strategies to increase engagement and positivity about starting a new job.

You might say that these kinds of statements are necessary in our litigious society. We happen to disagree with that point of view. But even if we were to agree that they are necessary, they diminish your efforts to engage and retain people.

Imagine you’re dating someone, and you start a discussion about being exclusive and moving in together. The other person replies, “I’d love to do that! But first I want to make sure you understand the reasons I might decide to end this relationship.” How would that make you feel?

 

Go Ahead: Get Close to Your Team

I loved your advice on getting close to people. I’ve long advocated this. What are the benefits of getting close to people at work?

When you cultivate close, positive relationships with your employees (and among your employees), every employee spends his day with people he really likes and cares about. This increases job satisfaction, engagement and morale. Teamwork improves because employees are more likely to go the extra mile for people they care about. When problems occur, employees with good relationships will resolve them more easily. A leader who has close relationships with her employees can exert more influence on them without using her power. For instance, when she asks for extra effort, they’re more likely to give it.

 

Leadership Tip: the closer you are to someone, the easier it is to influence that person.

 

Talk about the importance of setting expectations.

How Leaders Create A Compelling Vision to Engage & Inspire

company vision

Lead With Vision

Leaders create a vision and engage a community to achieve it.

What does it mean to lead with vision?

It’s a question that authors Bonnie Hagemann, Simon Vetter, and John Maketa researched extensively, surveying over 400 companies in search of the answer.

I recently spoke with the authors about their new book, LEADING WITH VISION: The Leader’s Blueprint for Creating a Compelling Vision and Engaging the Workforce.

 

Would you share the story about “going up the stairs two steps at a time” and how it impacted your view of leadership and culture?

Yes, of course.  Back in 2006 I had a meeting with Jim Bolt, the founder of Executive Development Associates (EDA), to discuss how I would run the company. Jim had been developing senior leaders since the early 1980s and was a renowned expert in the field. I knew I had much to learn from Jim and hoped we could work together. I didn’t know at the time that the very first piece of advice he would give me would shape and inform every leadership decision I have made since. Before I left that meeting, Jim handed me a book from his shelf called Let My People Go Surfing by Yvon Chouinard, founder and CEO of Patagonia, a sports clothing company.

The book is the story of Patagonia with an emphasis, almost a plea, for sustainability.  Jim wanted me to start thinking about how we could help with this effort, I read the book but it was something else within that captured my attention. The CEO of Patagonia wanted to build an organization where employees were compelled to come to work. Yvon Chouinard wanted a company where employees were a part of their environmental mission.  He wanted employees to be wholly engaged and committed.  He said, “Work had to be enjoyable on a daily basis. We all had to come to work on the balls of our feet and go up the stairs two steps at a time” (Chouinard 2005, 45).

That statement struck me as extremely important.  Imagine the creativity and courage and productivity that would come from a workforce like that.  The power of it is immeasurable.  That is what visionary leadership can do.  It can unleash the power of the workforce.

 

Visionary leaders create a clear picture of a positive future state.

 

The 4 C’s of a Visionary Leader

What’s your definition of a visionary leader?

A visionary leader is a person who steps out and creates a clear picture of a positive future state.  It takes a lot of courage because creating a vision for the future is basically imagining what could be and what should be.  That feels very risky for leaders.  It is stepping out of the norm.  There are certain things they will need to do.  In the book we explain further by putting it into 4 Cs.  They must:

  1. Embody courage,
  2. Forge clarity,
  3. Build connectedness, and
  4. Shape the culture.

 

What advice do you have for a leader struggling with creating a compelling vision? 

Lead True by Putting People First

Leadership Compass

Put People, Organization and Community First

No matter the industry, leaders face the same types of challenges. It’s a leader’s personal compass that makes all the difference.

Jeff Thompson, MD is chief executive officer emeritus at Gundersen Health System. He’s a pediatrician, an author, and a speaker on building a mission-driven culture. During his tenure, Gundersen Health was recognized for its quality care. Dr. Thompson was awarded the White House Champions of Change award in 2013.

I recently spoke to him about his new book on leadership, Lead True: Live Your Values, Build Your People, Inspire Your Community.

 

Leadership Tip: Show people you are there to build them, not rule them.

 

Give Others Courage

You share the dramatic story of you intubating a baby, risking your own career to save a life. There are so many leadership lessons in this story. But I want to ask this: how do you teach others to make these decisions?

No leader can always be everywhere. No rule book can cover every situation. To prepare the staff first you need to believe you are there to build them, not rule them. Holding people accountable is looking backwards…being responsible for their success is looking forward. Give them the tools to make these decisions without you. You need to set a pattern of clarity of the values of the organization, the priority of service above hierarchy, service above self, long-term good over short-term self-protection. When they see you live this, when they see you recognize this in others and support this level of behavior, they will have the courage to do the same.

 

“You want to invite new ideas, not new rules.” –Dan Heath

 

Courage and discipline. You linked these together. Tell us why and how they relate.

Aristotle is attributed to have said, “Courage is the first of human virtues because it makes all others possible.”  Courage isn’t the absence of fear, it just means fear doesn’t get to make the choice. Having courage is a great start….without courage so little will move forward. But discipline gives courage legs. It focuses and moves the work forward. It keeps you from letting your courage make a stand but accomplish little.

For example…those protesting pipelines and coal burning are very courageous…but if they also have the discipline to lead the conservation effort…they will force the market pressures to limit new pipelines and coal burning. Courage plus discipline will have a much greater effect.

Or you may have bold clear no compromise rules in your organization about how all staff will be treated or how gender and diversity will be respected. Clear, courageous but not effective unless you have the discipline to live by it when one of your high performing stars behaves badly. You need the discipline to follow up on your bold stance. No one’s ego can be more important than the well-being of the staff or organization.

 

“Good leaders don’t tell people what to do, they give teams capability and inspiration.” –Jeffrey Immelt

 

Be a Humble Leader