Chapter 3
Managing Profit Performance
In This Chapter
Recasting the Profit and Loss statement to focus on profit factors
Following two trails to profit
Breaking even – not the goal, but a useful point of reference
Doing what-if analysis
Making trade-offs: Be very careful!
As a manager you get paid to make profit happen. That’s what separates you from the non-manager employees at your business. Of course, you have to be a motivator, innovator, consensus builder, lobbyist and maybe sometimes a babysitter too. But the real purpose of your job is to control and improve the profit of your business. No matter how much your staff love you (or do they love those doughnuts you bring in every Monday?), if you don’t meet your profit goals, you’re facing the unemployment line.
You have to be relentless in your search for better ways to do things. Competition in most industries is fierce, and you can never take profit performance for granted. Changes take place all the time – changes initiated ...
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