Is COVID squeezing your profit? Do you need positive cash flow now?
Here is the fast way to get you back on track.
Right now, the COVID outbreak may well be forcing a new business reality on you. Perhaps you even need to rethink your business model. If so, then our rapid business turnarounds service will help you. This briefing describes how we work with firms like you to immediately stabilize the business and then:
- Avoid capital restructuring and loss of control
- Build back strategic capability fast.
- Double or treble profits within twelve months
- Improve employee productivity by an average of 35%
Typically, TBD helps you achieve these seemingly ambitious goals:
- Regardless of what is going on in your marketplace
- Without relying on a huge hike in sales revenue
- Without using extra capital expenditure
- With no extra employees
- In a matter of a few weeks
- And without eye watering fees. In fact our work is always self-funding
The secret to our rapid business turnarounds is our integrated approach
The key factor to a rapid business turnaround is to take a highly integrated approach. This means instead of depending on a few ambitious ideas, we help you plan and orchestrate multiple practical and realistic improvements everywhere all at once. In practice this means that in just a few days you identify, plan, and synchronize between thirty and fifty improvement projects so that:
- Sales increase without extra overhead costs such as salaries and advertising spend.
- Prices improve without losing out to the competition.
- Costs reduce without spoiling quality and harming customer satisfaction.
- Overheads shrink without creating chaos, bottlenecks and extra stress trying to do too much with too little.
TBD’s secret is to make all of the above four profit drivers (Sales, price, costs and overheads) work for you – at the same time. And we start this process using our unique diagnostic methods. These help you and your team uncover all those hidden constraints, waste, bottlenecks and missed opportunities that hold you back. The next step uses a powerful team planning system that orchestrates the multiple countermeasures needed to improve your productivity and profit. Importantly, the planning does this in such a way as to avoid unintended consequences, and duplication of effort. You also avoid provoking heated conflict about the way forward. The result every time, is that productivity climbs and profits soar as a result.
Rapid business turnarounds mean making the best of what you already have
In essence, we help you overcome your current challenges by combining the talents and energy of your entire enterprise to maximize the use of your existing resources. In other words the objective is to achieve more with less. How do we do this?
Learning through action
You can’t solve a problem with the same thinking that caused it. So, part of our role is to get you and your team to think and problem-solve differently. This way, we help you come up with the appropriate countermeasures to each and every one of your problems. Although major improvements may take time to plan and implement, it is amazing what you achieve in just a few weeks, or in many cases just days.
A cascade of improvements trigger the multiplier effect
A key factor, in rapid business turnarounds, is to improve productivity across the board. First and foremost that means comprehensive productivity improvements to each and every profit driver. But also the team planning mobilizes and integrates every business process, sub-system, function and department in alignment with your survival or growth strategy. As a direct consequence you save time, money and energy getting you where you want to go. Generally then, we see that this improved productivity stimulates:
- Large numbers of small improvements in all four profit drivers at the same time
- Maximization of all existing resources
- Minimal disruption to everyday operations.
- Development of a fully aligned long term strategy
When done simultaneously, there is an added bonus in growing all four-profit drivers at the same time. And that is, you trigger the multiplier effect. This is where a large number of small incremental improvements accumulate to realize a disproportionate increase in net profit. The example below shows you how.
Four profit driver profit multiplier example
Print company increases business value from £290,000 to £2.46 million. A company with a £5 million sales turnover sets up 25 different performance improvements across the organization. These projects improve each profit-driver simultaneously, without harming any of the others. The result? increased net profit from £72,000 to £548,000.
New capital value: The management action plan orchestrated increased sales, a more self-sufficient management team, and a coherent growth plan. Importantly, the impact of all of these coming together at once, improved the company valuation multiple from 4 to 4.5 times net profit. The result was a new capital value of £2.46m – By the way, that’s eight and a half times the previous value.