Need to maximise your profits?
How Measuring Your ‘Labour Efficiency Ratio’ Will Drive Your Profits Higher
You’re an ambitious CEO of a business with real potential. You’ve assembled a great team of A-Players and everything looks set for exponential growth. And yet, it’s not happening. Time and time again, you’re missing your profit targets. What’s going wrong?
Most likely, it’s down to labour productivity. More than access to capital, tax policy or research and development, it’s the productivity of your people that will power your profit. Getting the staffing balance right can be really tricky, particularly ensuring you have the right percentage of management-level labour. Most people measure this as a percentage of revenue or gross profit per head, but this can be too blunt. It doesn’t tell you if labour was productive or generated sufficient profit.
Instead, I’d like to introduce you to a tool, the ‘labour efficiency ratio’ that, once understood, can be transformational for your business.
How Metronomics can Help Grow your Business with Shannon Byrne Susko
If you’re wondering if there’s a silver bullet to help you grow your company and get you there with speed, ease and confidence, then don’t miss Shannon Byrne Susko discussing her latest book, Metronomics, in this episode.
Shannon is a CEO and leadership team coach, bestselling business author, speaker, serial entrepreneur, and corporate director. She has distilled her extensive knowledge gained over 25 years at the helm of various companies, and coaching clients, into her new book Metronomics, a definitive How To guide to take your CEO and leadership team on a very prescriptive journey.
Metronomics is the silver bullet your organisation has been looking for. Shannon’s book takes you on a journey, it guides you to where you want to go, asks what’s the goal, and shows you why the one thing people need to do – define purpose, core values and their culture – is the one thing they never want to do.
In this episode, Shannon discusses her 3HAG system, why she wrote Metronomics, how Metronomics will help high performing teams win their business Olympics, why businesses need a playbook, the Coach Cascade System, and why key function flow map (KFFM) is essential to business growth.
Tim Harford and the More or Less team try to make sense of the statistics which surround us. From BBC Radio 4.
Diversity is a hot topic in many workplace environments, and there seem to be many inclusion initiatives to help diversify the job market.
As anyone who has led an organization since 2020 knows, assumptions about the nature of work and how it is organized have gone out the window.
If the tumult of 2020 has prompted your organization or leadership team to reconsider people priorities such as employee well-being, resilience, or purpose, then you’re in good company.
‘Making money is a knack, a knack that can be acquired. And if someone like me can become rich, then so can you – no matter what your present circumstances. Here is how I did it and what I learned along the way.’ So writes Felix Dennis, who believes that almost anyone of reasonable intelligence can become rich, given sufficient motivation and application. How To Get Rich is a distillation of his business wisdom. Primarily concerned with the step-by-step creation of wealth, it ruthlessly dissects the business failures and financial triumphs of ‘a South London lad who became rich virtually by accident’. Part manual, part memoir, part primer, this book is a template for those who are willing to stare down failure and transform their lives. Canny, infuriating, cynical and generous by turns, How To Get Rich is an invaluable guide to ‘the surprisingly simple art of collecting money which already has your name on it’.
The trick, of course, is figuring out just how many of our successes (and failures) can be attributed to each—and how we can learn to tell the difference ahead of time. In most domains of life, skill and luck seem hopelessly entangled. Different levels of skill and varying degrees of good and bad luck are the realities that shape our lives—yet few of us are adept at accurately distinguishing between the two. Imagine what we could accomplish if we were able to tease out these two threads, examine them, and use the resulting knowledge to make better decisions. In this provocative book, Michael Mauboussin helps to untangle these intricate strands to offer the structure needed to analyze the relative importance of skill and luck. He offers concrete suggestions for making these insights work to your advantage. Once we understand the extent to which skill and luck contribute to our achievements, we can learn to deal with them in making decisions.
MEANINGFUL ACTION FOR MONDAY
Work through the ‘Depth/Frequency Conflict Model’ with your team
If you feel your executive team doesn’t deal well with conflict and avoids it, consider working through Patrick Lencioni’s Depth/Frequency Conflict model. Get other members of the team to tell you where you fit and, in the same way, give your opinions on them. You’ll be judging whether each person has substantive or shallow conflict and whether this is rarely or frequently. We did this recently with a team who recognised that they avoided conflict. We found that there were two people who the rest of the team said had frequent and substantive conflict. And they were also the two people who, when we spoke to them in advance, said they didn’t challenge each other because of defensive behaviour. It was pretty clear that these people took any criticism as an attack and came out all guns blazing to try and intimidate the person giving the criticism. The rest of the team were firmly in the ‘rare and shallow conflict’ part of the model – mainly because the two strong personalities shut everyone down. So these two people need to be more conscious about how they show up and the others need to be allowed more conflict. Even though we pointed these things out and they said they were comfortable being challenged, it wasn’t easy.
Conducted in The New Forest, away from the uproar of the everyday commercial world, the Scaling Up Made Simple Workshop is presented by Scaling Up Coach, Dominic Monkhouse to allow you the mental space to look at your business afresh – to recognise your strengths, your weaknesses and your opportunities. The workshop is your first step in the process of identifying and addressing the real challenges confronting your business. You will receive practical guidance in the essential skills that underpin manageable growth.
Join Dominic Monkhouse and Bryony Thomas for a Live Webinar to dive into her book Watertight Marketing. They will be talking about all things business and marketing to give you the insight, energy, and passion you need for the rest of the year and next quarter.
Quote of the week
“Labour productivity drives your profit engine. How do you measure it and improve it?”Greg Crabtree
Dominic offers business coaching and management development, strategy planning and organisational change, using tried and tested methods to launch your organisation onto an unparalleled growth trajectory. His programme is a function of his broad experience, his deep expertise and a proven process used by over 2,700 firms worldwide.