Precast Inc. - September/October 2008 - (Page 22) BUSINESS & MANAGEMENT Management expert shows how precast manufacturers can maximize profits in any economic conditions. BY BRIDGET MCCREA C ompanies that make major mistakes attempting to increase their profits are nothing new to Kraig Kramers – he has seen it all. As president and CEO of Corporate Partners Inc. based in Atlanta, he says “knee jerk reactions to instant situations” take the most toll on firms looking to grow. “Senior executives and managers react in a pre-programmed fashion,” says Kramers, “based on what they’ve learned from others who have made the same mistakes in the past.” Learning from others’ mistakes may work in some situations, but when it comes to optimizing profits it’s not exactly the right approach. In a recession, for example, many companies jump to cut their advertising and marketing budgets, thus reducing their chances of expanding market share and growing sales. “If the advertising is working for you, why would you cut it?” asks Kramers, who advocates controlling costs (rather than cutting or reducing them), and getting employees, customers and suppliers on board with the strategy. It is a much more SEPTEMBER/OCTOBER 2008 | PRECAST INC. effective approach, he says. An introspective, thorough look at company operations and profitability is a good place to start, according to Kramers, who recently worked with a Maryland company to do just that. “Take a step back and spend a few weeks gathering and analyzing what you uncover,” he says. Pay particular attention to measurements, says Kramers, as they can be a good (and usually quick) indication of profitability among the company’s various divisions and/or departments. And don’t be afraid to put the extra time into this assessment phase, he says, as “some companies can do it in a day and get started on improvements right away while others take more time.” Cause of sales One approach that Kramers advises all managers to take involves looking at the “cause of sales,” or the drivers behind their firms’ sales volume increases. “About 90 percent of 22 Dreamstime Optimize Profits with Top Management Tools
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