10 Commitments to Profitability

Commitment isn't as popular today as instant success.profitable industry leaders are growing their companies
But without commitment, short-term success isn'tthrough their customer loyalty programs which are
guaranteed, and without commitment, long-termfocused on their continuing commitment to improving
success is impossible.the quality of their organizations on every level- at
To accomplish the strategic direction for yourevery opportunity.
company while building value in your organization there6. Inspire Innovation and creativity. These two factors
must be a consistent focus on the "shared vision" andare the key drivers of growth in your organization.
an agreement on the mission of your company.Many organizations today- still adhere to a very strict
Commitment helps produce the focus necessary tosilo-type, vertical management structure which
generate the resources and time to accomplish goals.severely hampers the ability of your employees to
Continually communicating to your employees, vendors,contribute their ideas, suggestions, process
clients and shareholders that your management teamimprovements, etc. By creating a culture that
is committed to accomplishing the corporate goalsencourages and respects employee contributions you
creates energy, enthusiasm and a spirit of teamworkcan continuously outpace your competition and reduce
organized around measurable results. To create andemployee turnover.
sustain long-term profitability for your company, focus7. Cultivate Client/Customer Relations. Your
your organization on the "10 Commitments toorganization would not exist without your customers
Profitability.clients - and yet most companies treat this valuable
1. Craft visionary strategies. Every organization has toasset so poorly it is a wonder they still have business.
have a road map to know where they are going andThe word "cultivate" implies - continuing to improve and
how they plan to get there. When conducting yourthe word "relations" implies building a connection. A
strategic planning make sure you focus on thecommitment to developing long-term customer
short-term but plan for the long-term. Too manyrelations - should always be a core value for your
companies focus solely on managing the efforts of theorganization.
short-term revenue goals and they tend to lose theirStudies show, people who have had a good
focus on their long-term targets. Strategies areexperience with a business will become repeat
created for the long-term (5- 10 years) and yourcustomers 70% of the time. People who experienced
business plans are implemented for the short-term (1-a problem with a business, but the problem was
3 years).handled to their satisfaction became repeat customers
2. Adhere to Core Values. Every organization should90% of the time. Since your most profitable customer
have well defined core values which serve as theiris a repeat customer, make sure you have policies in
guiding light. These values should be woven into everyplace to keep your customers satisfied.
aspect of your organization and all company policies,8. Emphasize the "human" in resources. Creating a
procedures, and programs should reflect them.culture where employees feel valued and feel they
Continually communicating these values with yourmake a contribution is the number one reason people
employees, your customers, vendors, and consultantscite for staying with a company. One of the fastest
will help make sure everyone is committed to ethicaland most effective ways to erode your profitability is
business practices. Core values are the foundation forwith high employee turnover. The cost of replacing an
your organization and should be integrated into everyemployee is on average more than 3 times the exiting
business strategy.employee's salary plus benefits. That figure does not
3. Build a Strong Reputation - You company'sinclude the value of the intellectual property and
reputation is your most valuable asset and fortunatelyrelationships that the employee took with them. You
you have control of what you create. Reputations arealso lose valuable time in new-hire training. On average
dynamic and everyone in your organization isit is a minimum of 6 months before a new hire- is fully
responsible for maintaining it to the standards thatengaged in their job and closer to a year before they
have been defined by your core values. One badare making measurable contributions.
incident can destroy years of good will with your9. Manage your technology and infrastructure
customers and your employees. On average if aproductively. We live and work in a fast paced world-
person has a bad experience with a company they willand the pace of change will only continue to
tell 10 people and with today's technology of blogs andaccelerate. With all the new technologies available
message boards that bad experience can reachtoday - it is imperative that companies manage their
millions of people in just minutes. The most profitableresources more closely than ever before. When
companies have the highest percentage of repeatconsidering investments in your technology and
customers and those loyal customers are cultivatedinfrastructure focus on the long-term productivity
through a strong reputation.savings and benefits rather than the short-term
4. Focus the Spirit of Competition. We all faceexpense. Too many companies lose business by not
competition and if managed properly competition is anupgrading when appropriate and too many companies
excellent motivator for your organization. The key is tolose money by upgrading more often than necessary.
use your competition to drive excellence in your own10. Be Proactive. Adopting a proactive strategy saves
organization. It is always more profitable to focus ontime, energy and creates "goodwill" with employees,
your organization's strengths, products, differentiators,customers/clients, vendors and the community. Nine
market share, branding, industry position, etc. than tryingtimes out of ten being reactive is only prolonging the
to react to your competitors strategies or initiatives.inevitable - and doing so will result in higher costs, lower
Work with your customers to define what they wantproductivity and lost valuable customer/clients relations.
from your organization, what they value, and whatBuilding your reputation on "doing right" rather than
they perceive you could do to improve - and leave"being right" will always lead to increased profitability.
your competition to keep up with the standards andBeing in business today is fun and challenging. When
services your organization has created.planning for the future create five to six BHAG's (big,
5. Integrate Quality at every level. There never hashairy, audacious goals) and then craft your growth
been and there never will be a respectable businessstrategies around these goals. The key to long-term,
model that justifies compromising quality to reducesustainable profitability is to build in flexible milestone to
costs. There are a myriad of companies who haveallow for adjustments in the economy, your industry,
sacrificed the quality of their products and services toand changing market conditions. If you align your
improve their short-term profitability, only to losebusiness strategies based on the ten commitments . . .
valuable and often irreplaceable market share. Today's. . . you will create a company "built to prosper.