Are you losing customers and profits because manufacturing can’t execute?
What are the underlying causes preventing you from performing to your PROFIT POTENTIAL?
Leaders and managers need the operational skills to formulate and implement a commercially insightful – market driven – strategy for their domestic or international company. “You can’t change the basic trajectory of the business unless you change how you manage it. The gut wrenching, radical transformation in the business is not on the shop floor ─ it is in the management office.”
You need the multiplier effect of profits, where systematic effects will repeat year after year. For example: if revenue is $5M per year, 2% profit is $100K; then if you raise profits to 5% that’s an additional $150K more per year; $750K over the next five years. PLUS, if you sell the business at 3X EBITDA you’ll gain an additional $450K in business value for when you are ready to cash out! You can’t multiply by zero…
Most businesses have the potential to achieve levels of productivity and creativity that are often surprising – even to them. When profit potential is unleashed the results can be staggering. Never play on a level playing field…build and maintain competitive advantages.
Remember: Intelligent systems in the hands of ordinary people produce extraordinary results!
Manufacturing is Complex, but it’s still all about growth. You CAN take your company to the forefront of your industry!
- Large numbers of employees – skilled and unskilled, line and staff, flexible and inflexible – work in a network of domestic and foreign facilities.
- Formal and informal systems, good and bad practices and old and new cultures coexist.
- Production sometimes consists of low volumes of highly engineered, customized products; sometimes medium volumes of high-performance products with short product life cycles; and sometimes high volumes of high quality, low cost commodities.
- Production processes are as varied as the products they produce. In the last 20 years, countless new techniques, technologies and programs have appeared, each presented as the way to dramatically improve manufacturing capability.
Companies need a strategic manufacturing plan to bring structure into this complex environment.
REACH for your high-order objectives:
- High safety, high sustainability by making resources more productive.
- Save sales, customers and relationships by knowing your customer perceptions, top-of-mind-concerns; are you learning and determining what your customers don’t realize? Does what you do disrupt the customer’s thinking and teach them something new?
- Amplified marketing and sales capabilities and results – accelerating revenue and profit margins; building brand and recognition; maximize the transactional value of each customer.
- Inventive product development that expands markets and products; perceived quality is increasing as well as relative quality.
- Modernizing PP&E – capable of obtaining next level financing
- A systematized company…capable of running itself; working standardized processes and procedures. Lower manufacturing cycle time – increased throughput per hour.
- Decreased people turnover – hire and retain the best talent. Train – train – train for new capabilities and get results; engaged and motivated employees; able to pay people more; a challenge culture where the doers are doing and knowledge gaps are closing.
It’s HARD because manufacturing changes slowly. It takes a long time to build new facilities, install new equipment, develop new suppliers, change operating procedures, train personnel and close or move existing facilities.
In comparison, customer requirements change quickly. New products appear, technology changes, economic conditions fluctuate, companies reorganize, new competitors emerge, and government regulations change. A superior manufacturing strategy keeps a slower manufacturing function aligned with a fast marketplace.
Catalyze your company for profitable growth:
- Find out if your products and services have a competitive advantage.
- Consider a different kind of organization to allow you to prospect for new market opportunities.
- Learn methods to find new customers and markets.
- Develop a system to design new products that customers will buy. Innovation practices and procedures that relentlessly pursue productivity.
- Use future technologies and new processes and methods to modify your products or invent new products.
- Analyze the way you sell and consider different types of sales channels.
- Unleash people power and create an advanced training program for the people you will hire now and in the next decade.
In a recent Deloitte consulting survey of North American CFOs, they found that “60% of the firms say their top company challenge is revenue growth from existing markets.” I think that it is safe to say that since America has felt the pressure of globalization, many American manufacturers are no longer growing, especially in terms of sales.
What’s Next? PRODUCING PROFITS, a business support program for small- to medium main street manufacturers:
- Who have lost some of their most valuable customers
- Who need to diversify into new customers and markets and to get rid of unprofitable customers
- Who are in stagnant or declining industries with too many competitors
- Who are not growing
- Who are no longer earning the profits they need to survive in the long term or to cash out and retire with the wealth they desire.
The MODERN manufacturer knows how to compete! They eat change for breakfast, are not afraid of foreign competitors and are organized to turn on a dime. Many prefer high margins and low volume as they operate with excellent cost information. They absorb all kinds of new information using accelerated learning. It is not unusual to find manufacturers, without a strategy to guide them, doing the wrong things very efficiently! What do you need…DECIDE!
So, can you act as the change agent or do you need help facilitating change? It means turning from an internal focus to an external one. Are you a defender company or a prospecting company? The bottom line is all about learning HOW-TO-WIN! Your success can be through any combination of continuous improvement or transformation:
- Discover what your customers are doing and increase customer/market diversity – customers are in charge of the forces that are changing manufacturing everywhere.
- Growth planning – use a strategic marketing process to create a differentiated market position, develop new products or specialized services – apply pricing as a marketing weapon.
- Many emphasize customization and short production runs while focusing on lowering overhead, increasing contribution margins and accurate costing; willingness to subcontract and outsource to lower costs
- Apply throughput accounting that uses the metric of time.
- Organizational transformation – many are decentralizing their organizations; are active in workforce education and training
Move to the offensive…find those non-linear solutions, continuous improvements and boost the rate and quality of learning. Design the whole delivery system to deliver what customers value.
Contact John @ 440.759.1915 or schedule your FREE PRODUCING PROFITS strategy session below!
- Six Mistakes Manufacturers Make That Damage Profitability!
- Profitable Perspectives on Marketing and Sales Training
- Profitable Perspectives on Accelerating Technology
Here’s the deal. You are contacting me to schedule a FREE PRODUCING PROFITS Strategy Session because you have a clear and urgent need/want (i.e. how can I increase throughput?) and feel that my expertise, programs and services can resolve your challenges.
In this strategy session, we’ll exchange information. What are you thinking? What are you missing? We’ll have an in-depth conversation about your issues and objectives to see if we are a good match.
- After our strategy session, I’ll provide General Recommendations (GR) and investment options as to how The Profitability Catalyst can help you solve your issues via my high-value frameworks and expertise.
- After, the GR is agreed to and accepted we will engage for a minimum of three months (unless more time is agreed upon) where I will advise, educate and provide guided practice so you can walk-the-talk, one step at a time.
- The key is to build personal trust as we co-create your unique manufacturing strategy and execute it for profitable growth.
If you follow our agreed to recommendations, then your satisfaction is 100% guaranteed! We want to reach goals and timeframes with everything working to our specifications.
Clients who engage with The PROFIT SYSTEM, business support program have more foresight and insight into the art and practices of leadership, strategic market positioning and producing profits. They are able to run their company more effectively and efficiently by exploiting the dynamics of their strategic plan. Make YOUR business come alive with a sense of accomplishment!