Great Numbers! Shows How Companies Can Counter the Sagging Economy
New Tools Help Executives Deliver Maximum Results
Sinking demand can take a company's results down with it. Increasing the company's underlying ability to increase sales, improve profitability and boost economic value can help offset the decline.
An article series just published in Chief Executive magazine shows executives how they can create maximum results, in good times and bad, using three tools the article describes. The author, Drew Morris, founder of Great Numbers! LLC, says the use of these tools will both benefit investors and save jobs.
Declining demand will dent a company's revenue, unless it gains market share, and can hurt profits even more. Pressure to keep investors satisfied leaves executives with hard choices like cutting jobs or R&D.
A less onerous choice is for the company to get all it can from what it's got—to maximize its results, given the environment. Until now, executives couldn't deliver maximum results because they didn't have the
necessary management tools. That's changed…
Morris' Chief Executive article, Leading Your Business to Maximum Results, in the Jan./Feb. and Mar. 2008 issues, shows how to use the tools to answer three questions essential to maximizing results:
- What do our investors want: revenue growth or higher profitability—in what proportion?
- What management actions will maximize our performance relative to those expectations?
(The answers to these two questions maximize operating results.)
- How can we maximize the economic value of our company (and what metric should guide us)?
Using one of these tools, the general manager of a booming, well run $22 million business found ways to, over 3 years, boost his 30% annual revenue-growth rate another 14.5%, increase profit 141% and lift
operating profit margins from 16 to 23%. Clearly, the tools can compensate for declining demand.
Morris said, "These tools let executives see what they couldn't before—how they can best improve results and make more money for investors. Increasing companies' inherent ability to create wealth, widely
applied, can boost our economy."
A printable version of the entire Chief Executive article is here; an HTML version at www.chiefexecutive.net.
About Great Numbers!
Great Numbers! teaches executives how to use new management tools for maximizing their company's profits, revenue and value. We're like a performance-driving school for executives.