The week before last I wrote about how you can manage using operational metrics rather than just your financials. Doing so gives you the foresight so you can change the course of bad decisions or market conditions to deter the negative impact to your financials.
But, does this all work? Absolutely, but only if you are open to changing your perspective and the way that you approach your business.
This week, I come to the keyboard with a real world example. I learned a long time ago that when it comes to business most people are from Missouri like my wife and live by the motto of SHOW ME!!!
In early 2009, I was presenting a webinar to members of the American Institute of Building Design (AIBD) a national organization for home designers. A member with a portfolio of construction and commercial real estate companies approached me about engaging DE, Inc.
Their current situation was not good with several years of receding profits which had reached 1.4% overall. This was an application of the Tuning Your Revenue Engine model across a portfolio of 7 different companies and resulted in profits increasing to 15.4% and assets by 226% during the next 2 years. See the full case study on our website for more details.
One thing to note is this occurred from 2009 – 2011 which represents the worst part of the economic crisis. And it happened with companies that were in an industry severely hurt by the downturn, so anything is possible with the right approach.
One major contributing factor was the owners came to the table willing to change. They knew their current situation wasn’t working. In fact, it was having the opposite effect as they were in a downward spiral and wanted it stopped.
They had gotten to a place where they were willing to push past the fear and do whatever it took to get the result they wanted. Was it hard? Sure, they had to make uncomfortable decision including firing people that had been a part of the company for years. But, getting past this created a new outcome which was better in the long run for them and the people they employ.
Is change possible in every case? YES, but only if you are willing to make the changes necessary in yourself first. This is non-negotiable!
You see, if you could make the changes necessary for your business, you would have made them already. If you haven’t then the question you must ask yourself is, WHY NOT?
It all comes full circle once again – FEAR. But, fear of what? Often it is the fear of the unknown.
If you want to see what affect a change will have on your business, use the Revenue Engine Performance Analyzer on your business. It will give you a comprehensive view into what is possible with your business. The only thing needed is action on your part to get past the FEAR
If you struggle with fear, let me know how I can help. As you can see, success is possible. You just need to get the assistance you need to break though the fear – email me!