Commercial Integrator + Security Sales April 2024 - 44

UP FRONT
BUSINESS FITNESS | MONITORING MATTERS | INTEGRATOR INSIGHTS | BIG IDEA
BUSINESS FITNESS by Paul Boucherle CPP CSC
Prophet or Profi t?
PART 2
" The only thing worse than being blind is having sight
but no vision. " - Helen Keller
Last month, I leſt you with the challenge of being a prophet
of your profi ts with more confi dence. We talked about how to
better manage variances in projected and actual results in very
simple terms.
Mea culpa to those who passed Cost Accounting for the fi rst
time.
In addition, I threatened to share additional pointers to
guide your profi t prognostication. This month, I intend to
follow through!
A Quick Level-Set
Let's start with a refresh.
1. You have developed a clear and concise company vision
statement that encapsulates where the company is going
and when you expect to get there. Remember, this statement
must paint a picture of your mission that motivates the team
to " buy into " where you are headed. This is not an easy task
but remember this: You don't carry this load by yourself. You
can recruit your department heads and even a few respected
employees who are opinion leaders to help develop this statement.
When you share this vision with the entire company, the
rank-and-fi le will be closely watching their managers and peer
leaders' reactions. You are aiming for nods - not shrugs.
2. If you understand how each associate will process what
you share with them, it lays the groundwork for a great communication
culture. This is the key to your success and, even
more, to your managers' success. Good communication builds
trust in management and between departments. This is the
glue that enables real teamwork and creates the " oneness " that
delivers your competitive advantage. The DiSC tool and a little
application training enable this advantage.
Making Money and Losing Money
Profi t discipline is enabled by teaching your management
team and associates how the company makes money and loses
money. A basic Business 101 training session will help everyone
appreciate how their choices and actions impact the business.
If team members don't know the ABCs of basic business, it
can appear that all management decisions are motivated by the
profi t the owners keep and won't share. I'm not suggesting you
share details of your fi nances; the big picture will suffi ce. An
example may help clarify.
1. Suppose a manager says, " We need more people. " When
consulting, I respond with this question: " How much additional
revenue and profi t are needed to hire this additional
person? " This builds upon two things: Business 101 and a commitment
to performance/results. The answer to my question
depends upon the role and the compensation. Let's look at a
technician as an example. Wages + healthcare costs + benefi ts
package + truck + training + tools + initial learning curve (low
productivity time) = how much money the company will invest
over, say, a year. Share this with the requestor suggesting
hiring an additional person. Encourage them to start thinking
a bit more like a businessperson. Everything must be funded
by current revenue, cash fl ow and profi ts.
2. That then leads to the next question: " How much
additional revenue will be needed to fi nance this additional
person? " Well, if your gross margins are 40% and your net
margins are 15%, you will need about $400,000 to $500,000 of
additional revenue, minimum. Will adding this person cover
the spread? Remember, I'm not an accountant...but you get the
idea. If the upside of effi ciency and revenue opportunity are
there, then pull the trigger.
3. That department manager then has a clear picture of
expectations and the need to deliver measurable results with
the company's investment in personnel.
Working Hard Together
A business makes a profi t through associates' hard work
together. The more completely they embrace a clear vision and
communicate with one another, the sooner your prophecy of
success and profi ts will become a reality!
" The challenge of every team is to build a feeling of oneness,
of dependence on one another because the question is usually
not how well each person performs, but how well they work
together. " - Vince Lombardi SSI
PAUL BOUCHERLE, Certifi ed Protection Professional (CPP) and Certifi ed Sherpa Coach (CSC), is principal of Canfi eld, Ohio-based
Matterhorn Consulting (matterhornconsulting.com) and an SSI Industry Hall of Famer. He has more than 30 years of diverse security and
safety industry experience. He can be reached at paul@matterhornconsulting.com or @swisssherpa.
44 Commercial Integrator+Security Sales & Integration | April 2024
http://www.matterhornconsulting.com

Commercial Integrator + Security Sales April 2024

Table of Contents for the Digital Edition of Commercial Integrator + Security Sales April 2024

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