Profit Building

IMPROVING PROFIT is the number one objective of business leaders, yet most do not truly understand how to move beyond the basics when it comes to cost reduction for profit improvement. Typically, a company's response to reducing cost is to reduce the workforce. People are laid off in large numbers and dollars are saved-or so it seems. This is a mistake, a short-term solution. Profit Building provides a better approach, one that focuses on profit improvement as a stand-alone process, demonstrating how an organization can achieve its goals to improve profitability and reduce cost through a proven method based on team innovation management.
Perry J. Ludy offers a hands-on guide that shows managers how to move profit-and-loss financial reviews beyond the basics to creative solutions and genuine action plans. Using the author's four-step Profit Building Process (PBP), Profit Building shows how to organize teams with the specific purpose of improving profit-while providing an opportunity for employees to participate in developing cost reduction strategies so that profit improvement is perpetual.
A system of step-by-step activities designed to produce immediate and continuous results, the PBP shows managers how to apply concepts from prior learning-such as teams, innovation management, and performance improvement planning-to create tailor-made strategies for any organization. And it introduces "Questions Brainstorming," a new twist to traditional brainstorming that fosters avid group participation resulting in better solutions.
In order to achieve success beyond today, business leaders must leverage all resources available within the organization to improve profit, reduce cost, and create a better place to work. Profit Building is an executive handbook and a quick desk reference for managers that shows how to do just that.Preface
1 What Managers Need to Know About Cutting Costs and Improving Profits
The Profit Improvement Paradox
Profit Improvement Paradox Test
Development of the Profit Building Process
2 Improving Profits: Better Ways Than Layoffs
The Downsizing Dilemma
Perpetuating the Profit Improvement Paradox Summary
3 The Profit Building Process
Just What Is PBP?
Summary
4 Choosing and Managing the Profit Building Team
Picking Your Team
PBT in Action
Tips for Choosing and Managing Your Team
Summary
5 Preparing Your Team and the Organization
The Organizational Complexity Predictor
PBT Preparation
Managing Change
Basic Innovation and Adoption
Summary
6 Generating Creative Solutions by Asking the Questions
From Questions to More Questions . . . To Solutions
Questions Brainstorming in Action
Start Asking Questions
Questions Brainstorming Jump-Start List
Answering the Questions
Facilitating Questions Brainstorming
Summary
7 Taking Action and Documenting Results
The Components
Ranking the Questions
Developing a Performance Improvement Plan
Why Document It?
Managing the Process Summary
8 Reviewing Progress and Following-Up
My Learning Experience
A Thorough Inspection
Timely Follow-up
Igniting the Process
Asking the Next PBP Question
The Manager’s Role in Implementing the
Innovation
Summary
9 Fifty Action Steps for Immediate Profit Improvement
How to Use the List
Ideas to Reduce Costs and Build Profits
Revenue
Other Personnel Costs
Summary
10 Sixty Further Steps to Cut Costs in All Areas of Your Business Communications Utilities
Professional Fees
Marketing
Public Relations
Insurance
Travel and Entertainment
Equipment Rental and Maintenance
Facilities Cost
Vehicles
Other Supplies and Services
Other Expenses
11 How and Where to Get Started
Appendix
Profit Building Process
Forms
Footnotes
Bibliography
Author Biography
IndexPerry J. Ludy is a senior executive with more than 25 years experience with leading corporations and entrepreneurial companies. His consulting firm, LUDYCO, International specializes in helping domestic and international organizations develop creative approaches to building profits and managing innovation. Ludy also speaks, conducts seminars, provides corporate training, and consults on mergers and acquisitions. He has worked for leading US companies including PepsiCo, Inc., Procter & Gamble, and Imperial Corporation of America.