profit

Speed versus Bottlenecks

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The pursuit of speed and agility is constrained by bottlenecks.  Bottlenecks arise as a consequence of striving for functional efficiency. The premise is that maximizing profit requires that we optimize the use of resources. Since people tend to be the most expensive resource, being efficient demands that everyone be kept busy all the time.  It’s easier to measure efficiency by focusing on narrow, functional processes, without regard to cross-functional work flow and resulting outcomes. In pursuit of efficiency, …

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3 Revelations of Optimistic Leadership

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Counting our blessings during Thanksgiving often generates optimism and energy.  Optimism, as it turns out, makes a difference in business metrics like productivity, customer satisfaction and profit. Why? Because optimistic people expect to succeed. When they encounter obstacles, they try harder – instead of giving up, they find ways to overcome the barriers and reach their objective. Leaders who are optimistic raise the aspirations of their people to see what’s possible and to achieve their …

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Curse of the Gorilla Customer

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When you have one customer whose business represents more than 25% of your revenue, then you have a “gorilla” customer. If you don’t have one now, you will likely get one at some point. If you are already in this position, then you’re probably feeling vulnerable. What happens if you lose this customer? Don’t be afraid of the gorilla customer – you certainly shouldn’t refuse additional work they’re offering. It’s likely that your business with …

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Purpose Drives Profit

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Bad things happen when profit is separated from Purpose. The negative consequences include poor quality, myopic focus and short-term thinking that can  be destructive. Over time, organizations become consumed with surviving and reacting to the marketplace. Purpose can be forgotten, beyond the need to make money. Yet evidence is growing, particularly on Wall Street, that an organization’s commitment to fulfilling its Purpose achieves goals and elevates performance. “A great strategy without a compelling purpose is like …

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