Home' AME : AME Target Fall 2016 Contents 36 TARGET AME.ORG/TARGET
This is not about judging you based
on current results; this is about seeing
• Compare your results to the earlier bell
F? Does that feel like the “right” grade
for all the work and effort you invest in
• Download your copy of the Benchmark
Report from profitinplainsight.com/
Benchmark and compare your results
to your industry or one similar to it. Are
you better, worse or about the same?
Don’t get complacent if you’re “as
good as — this is about setting the bar
higher, and following in the footsteps
of those who’ve achieved extraordinary
results in any industry.
Step 2: Take action on five ways to
leverage your Return on People insights
for continuous improvement and impact.
What would moving up a grade make
possible in your business? Goals only
become reality when we take next steps
to achieve them, so here are five action-
able next steps to get you started, once
you’ve set the bar higher.
1. Start by evaluating your own industry
How do you stack up? How big is the
gap, either below the minimum, max-
imum, or average of your category, or
above results reported by your Fortune
500 counterparts? Where are you in
comparison to the gold standards you
aspire to, whether in your own industry
or in other industries?
Action: Graph your industry.
2. Explore the gaps.
Delve more deeply into what other firms in
your industry category are doing by scru-
tinizing their annual reports. By all means
take a look at the financials in case you
can spot people-driven positives there, but
pay more attention to the tone and content
of the written narrative. What are they
doing to create value through innovation
or alignment? What are they doing to build
value in their organization through engage-
ment and getting it right the first time?
What are they doing to capture value by
leveraging the strengths of the organiza-
tion into earning more profitable business
from loyal customers?
Action: Learn from your competitors,
then leapfrog them vs. copycatting.
3. Take a look at other industry categories.
Other sectors may share some char-
acteristics with yours, e.g ., the service
industries, manufacturing, retail or natural
resources. Are their profits per employee
higher or lower than the average in your
category? Can you identify why? Looking
at Amazon and Barnes and Noble, which
reside in different categories, for example,
produced some interesting insights.
Action: Evaluate what noncompetitive
insights from high-performing firms can
suggest in terms of profitable strategies.
4. Explore the stories behind some of the
highest-performing firms for between-
Are there stories in the press that help you
pinpoint what they’re doing differently? Are
there any concepts that can springboard
your firm into a new and more profitable
direction? Unexpected value-add is
one of the best ways to confound your
competitors and surprise and delight your
Action: Don’t overlook the opportunity to
learn from unrelated industries.
5. Develop your Return on People plan.
Look at where you are at today, how you
compare to your industry, and get clear on
the level of Return on PeopleTM that will
enable you to do everything you want to
do in your business. What needs to hap-
pen next to create a cycle of continuous
improvement in your ROP? Your best solu-
tion is to develop a Profit Plan that’s based
on delivering value to your customers.
Action: Set a new goal and commit to
implementing a plan to achieve it.
99 percent of business leaders stop at
good intentions. Only 1 percent take
When I’ve spoken to thousands of busi-
ness leaders and CEO masterminds at
conferences and corporate events across
the continent, 84 percent of them rate
themselves as less than a 6/10 in terms of
their satisfaction with their profits — a cru-
cial component of the Return on People
Most of them get a serious wake-up
Benchmark. Often, I’ll see them sometime
later and I’ll ask them how things have
changed. Most look rather shamefaced
and admit they haven’t done anything spe-
cific to change their results.
At the beginning of this article, you saw
the success story of a different type of
leader. One who gets the wake-up call,
takes action and quadruples his profits in
only a couple of years, transforming an
at-risk business into a success story. If he
can do it, you can do it. But will you?
Download your Benchmark Report and
simply get started. It includes additional in-
sights and resources that will support you
in moving your score up a grade within the
Bestselling author of “Profit in Plain Sight” and AME
keynote speaker and volunteer Anne C. Graham is a
profit and growth expert on a mission to help manu-
facturers thrive in any economy. She is the creator of
ProfitU and the 5-Step P.R .O.F.I+T Plan.
Annual Net Income
(Not Gross Margin, Not EBITDA)
Number of Employees
Profit Per Employee
Links Archive AME Target Summer 2016 AME Target Winter 2016 Navigation Previous Page Next Page