Many businesses train employees how to do their jobs and only their jobs. However, amazing things can happen when you also teach staff to actively involve themselves in a profitability process — that is, an ongoing, idea-generating system aimed at adding value to your company’s bottom line.
Here we will take a closer look at how to get your workforce involved in coming up with profitable ideas and then putting those concepts into action.
Six steps to implementation
Without a system to discover ideas that originate from the day-in, day-out activities of your business, you likely will miss opportunities to truly maximize profitability. What you want to do is put a process in place for gathering profit-generating ideas, picking out the most actionable ones, and then turning those ideas into results. Following are six steps to implementing such a system:
- Share responsibility for profitability with your management team.
- Instruct managers to challenge their employees to come up with profit-building ideas.
- Identify the employee-proposed ideas that will most likely increase sales, maximize profit margins, or control expenses.
- Tie each chosen idea to measurable financial goals.
- Name those accountable for executing each idea.
- Implement the ideas through a clear, patient, and well-monitored process.
For the profitability process to be effective, it must be practical, logical, and understandable. All employees (not just management) should be able to use it to turn ideas and opportunities into bottom-line results. As a bonus, a well-constructed process can improve business skills and enhance morale as employees learn about profit-enhancement strategies, come up with their own ideas, and, in some cases, see those concepts turned into reality.
A successful business
Most employees want to not only succeed at their own jobs, but also work for a successful business. A strong profitability process can help make this happen. To learn more about this and other ways to build your company’s bottom line, contact us.