Losing profitability

Without profits, a company cannot grow. Profits are also a company scorecard; a decline in profits signifies a drop in performance.

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Depth of problem

Losses or profit decline sits at level 1, Wastage or a Crisis of the Problem Depth Chart. It is the result of some deeper problems that must be found. If the result can be attributed to a change of manager or leader, this spirals you deep to level 5, Mood of an Individual.

What you can do now for free

If you have changed what was making you successful before, then go back to where you were.

If a market change has left you out in left field, get the team together to discuss a few simple, preliminary steps, to adapt to the new market reality.

If a new leader has completely changed the policies, institute a review of those changes immediately.

DO NOT START SLICING MUSCLE.

What you can do now for a low cost

Learn about profits and how to regain profits without incurring deep damage to your enterprise in Volume VIII.

What CCCC feels you should really do

If a quick reversal does not set you on the path to recovery, consider taking either of two actions:

(a) Institute a 2-day Annual Plan session to plot an agenda over the next few months to get the profits back. (b) Better, still, take a deep look at the company’s issues to resolve the problems that are causing the hurt. This is done with a self-designed 3-day strategic shake-up, the Strategic Alignment Retreat (SAR).

Related Problem Domains:  Financial | Production & Operations

Problem Depth Chart