Share the Secret: “Profit” Is a Clean Word!
PROBLEM:
Many distributors do not share general financial numbers with all employees on a regular basis. So, new plays and innovation metrics (based on insights from customer and SKU net-profit analytics) can’t be pursued. Too bad! All stakeholder groups would benefit enormously.
WHY NOT SHARE?
In many of my presentations over the years, I’ve asked roomfuls of distributor principals:
“Who shares the general financial numbers and key improvement metrics with all employees?”
Answer: 0-10%.
Why not? There are quick reasons that have net-positive solutions. It’s the tough psychological concerns (shared with me rarely and privately) that need more help: as in the following composite, imaginary conversation.
CEOs: “Bruce, for me (and I think many) it’s about ego fears. I want the world to think that I’m more competent than I am; and my company is bigger and more profitable than it is.
Sharing numbers might even scare some employees into leaving. Our going-nowhere numbers don’t promise great career growth.
And, employees would then ask questions for which I can’t give great answers. I’m not a financial, how-we-all-win educator. Nor do I have any new vision and strategy for making numbers improve for everyone’s benefit. We just keep doing what we are doing as hard and efficient as we can.”
BRUCE: “In a virtual meeting, I can show you how customer-profitability analytics will provide new insights for breakout, strategic results!”
CEOs: “Fan my greed with new strategies and push my fear button about Amazon and Cloud Ecommerce. I still don’t have enough confidence that I could execute big changes. I’ve allowed my employees to become older and complacent, like me! How can I ask them to do new stuff, when most have been in their respective ruts for years?”
BRUCE: “A corporate renewal challenge is like an unfit, middle-aged person getting ripped. It’s doable. But, be smart and patient with a good plan. And, a personal trainer with specific, track-record success helps.”
CEOs: “Well, breaking out of our tedious rut sounds appealing. We can at least invest some time into a virtual, overview session, and a visit with the Pivot Guy.”
For the part-time, renewal trainer check out Pivotal Advisory Group: (www.pivotalag.com). The principal, McKinnon, specializes in implementing distributor, customer-net-profit analytics plays. He will help you break “big change” into multiple small changes. Then, start each opportunity with baby-steps for quick, momentum-building wins.
Chief Information Officer at The Peoples Bank of South Carolina
5 年I worked for Jim for many years, and I will have to day he is correct.? He is a good leader and cares about people regardless of business decisions that have to be made due to the economics.??
I have practiced open book management for my entire career with no negative results and many positive ones. In tough times your associates understand belt tightening but in good times you better share the wealth or you'll have morale problems.?
Help BSCs & In-house Cleaning Ops with their pain points, and then provide consistently superior results. Also help mfgs & distributors achieve true strategic growth. Author. Speaker.
5 年Love the quote in the article from a CEO that fits too many - "Fan my greed with new strategies and push my fear button about Amazon and Cloud Ecommerce.? I still don’t have enough confidence that I could execute big changes.? I’ve allowed my employees to become older and complacent, like me!? How can I ask them to do new stuff, when most have been in their respective ruts for years?” ?