Reversing The Death Spiral

Peter the Printer is a gloomy story but the Death Spiral can be reversed.

You need to raise your expectations of the profit your business could …and should be generating.

The key question is:

“If your business was working well, how much profit should it be making?”

I know from personal experience that if a subsidiary of a big group is considered to be under-performing, it quickly comes under the spotlight.

There are crisis talks with two key questions:

  • What happened and why?
  • And what are you going to do about it?

There is an implicit or even explicit ultimatum…fix it or else!

If there’s no improvement, the Managing Director or CEO will be fired perhaps with some of the other senior managers quickly following when the new CEO starts.

These actions force a change of thinking and lead to new things being done in the struggling business…it doesn’t always go right but often you can see big improvements.

Learn To Wear Two Hats

I want you to wear two hats…

  • To be the major shareholder; and
  • The CEO.

And when you are wearing your shareholder hat, you need to think like a big group, be tough and demand action. Hold your CEO self accountable.

It’s only by thinking “This is not good enough” that you can challenge your ideas and change.

Return to P1M2 What Is Profit

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