Direction November/December 2017 - 32

Be sure to measure and track the
gross profit margin for your firm, and
make sure you know when it declines
and why. A decline means that you
are either not controlling your direct
expenses, or you are not pricing your
services correctly, or both. Costs are
going up in 2018, and you need to
adjust prices accordingly; otherwise,
your margins will obviously decline.
If everyone did this, everyone would
make more money. This knowledge
is key.
Know every dollar of indirect
expenses that you are spending.
Sit down with your CFO or accounting manager and dig into the details
of the general expense categories, and
make sure those expenditures are necessary. I have never seen a case where
cost savings of 10 percent or more
could not be achieved by doing this
analysis. Make sure you track every
expense category monthly as both

a dollar amount and a percentage of
revenue. If the percentage of revenue
increases, that means it is going up
faster than revenue and margins are
going to decline. If that's the case,
find out why, and take corrective
action if possible.
Know what comprises your
nonoperating income. Get familiar
with this "other" income and any
expenses below the operating profit
line. Always include interest expense
in this category.
Get rid of your unproductive
employees. I apologize if this sounds
callous, but you know you have them,
and they are hurting your profitability
and bringing down the morale of the
entire company. A typical business
has three types of employees: (1) "A"
employees who consistently exceed
expectations; (2) "B" employees who
can be counted on to meet expectations; and (3) "C" employees who

consistently fail to meet expectations.
Identify your "C" employees and tell
them specifically what you expect
them to do in order to stay employed.
Explain to your "B" employees
how they can become "A's." This is
neither an easy nor pleasant task, but
everyone will thank you, and the only
comment they will have is, "What
took you so long?"
Ask for help. Controlling cost
is not a one-person job. Ask your
leadership team and senior managers
for suggestions and ideas on how to cut
costs. Then ask all your employees for
suggestions on increasing efficiency,
and give cash rewards for good ideas.
Everyone should be enlisted in this
effort because everyone will benefit. If
the company makes more money, then
so will they (and vice versa).
Know your job costs. What
are the direct costs of a pack job,
and what is the gross profit? More

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Direction

32
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Table of Contents for the Digital Edition of Direction November/December 2017

FROM THE PRESIDENT
INDUSTRY NEWS
WHAT’S NEW AT AMSA
AMSA PARTNER PROFILES
Piloting Profits
Challenged by Change? We’ve Got This!
WASHINGTON WATCH
ADVERTISERS’ INDEX
FAST FACTS
Direction November/December 2017 - Cover1
Direction November/December 2017 - Cover2
Direction November/December 2017 - 1
Direction November/December 2017 - 2
Direction November/December 2017 - 3
Direction November/December 2017 - 4
Direction November/December 2017 - 5
Direction November/December 2017 - 6
Direction November/December 2017 - 7
Direction November/December 2017 - FROM THE PRESIDENT
Direction November/December 2017 - 9
Direction November/December 2017 - INDUSTRY NEWS
Direction November/December 2017 - 11
Direction November/December 2017 - 12
Direction November/December 2017 - 13
Direction November/December 2017 - AMSA PARTNER PROFILES
Direction November/December 2017 - 15
Direction November/December 2017 - 16
Direction November/December 2017 - 17
Direction November/December 2017 - 18
Direction November/December 2017 - 19
Direction November/December 2017 - 20
Direction November/December 2017 - 21
Direction November/December 2017 - 22
Direction November/December 2017 - 23
Direction November/December 2017 - 24
Direction November/December 2017 - 25
Direction November/December 2017 - 26
Direction November/December 2017 - 27
Direction November/December 2017 - Piloting Profits
Direction November/December 2017 - 29
Direction November/December 2017 - 30
Direction November/December 2017 - 31
Direction November/December 2017 - 32
Direction November/December 2017 - 33
Direction November/December 2017 - 34
Direction November/December 2017 - 35
Direction November/December 2017 - Challenged by Change? We’ve Got This!
Direction November/December 2017 - 37
Direction November/December 2017 - 38
Direction November/December 2017 - 39
Direction November/December 2017 - WASHINGTON WATCH
Direction November/December 2017 - 41
Direction November/December 2017 - 42
Direction November/December 2017 - 43
Direction November/December 2017 - 44
Direction November/December 2017 - 45
Direction November/December 2017 - ADVERTISERS’ INDEX
Direction November/December 2017 - 47
Direction November/December 2017 - FAST FACTS
Direction November/December 2017 - Cover3
Direction November/December 2017 - Cover4
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https://www.nxtbook.com/ygsreprints/AMMOV/direction_novdec2019
https://www.nxtbook.com/ygsreprints/AMMOV/direction_septoct2019
https://www.nxtbook.com/ygsreprints/AMMOV/it_issue1_2019
https://www.nxtbook.com/ygsreprints/AMMOV/direction_julaug2019
https://www.nxtbook.com/ygsreprints/AMMOV/direction_mayjun2019
https://www.nxtbook.com/ygsreprints/AMMOV/it_issue4_2018
https://www.nxtbook.com/ygsreprints/AMMOV/direction_marapr2019
https://www.nxtbook.com/ygsreprints/AMMOV/it_issue3_2018
https://www.nxtbook.com/ygsreprints/AMMOV/direction_janfeb2019
https://www.nxtbook.com/ygsreprints/AMMOV/direction_novemberdecember2018
https://www.nxtbook.com/ygsreprints/AMMOV/it_issue2_2018
https://www.nxtbook.com/ygsreprints/AMMOV/direction_septemberoctober2018
https://www.nxtbook.com/ygsreprints/AMMOV/direction_julyaugust2018
https://www.nxtbook.com/ygsreprints/AMMOV/it_issue1_2018
https://www.nxtbook.com/ygsreprints/AMMOV/direction_mayjune2018
https://www.nxtbook.com/ygsreprints/AMMOV/it_issue4_2017
https://www.nxtbook.com/ygsreprints/AMMOV/direction_marapr2018
https://www.nxtbook.com/ygsreprints/AMMOV/direction_janfeb2018
https://www.nxtbook.com/ygsreprints/AMMOV/it_issue3_2017
https://www.nxtbook.com/ygsreprints/AMMOV/direction_novdec2017
https://www.nxtbook.com/ygsreprints/AMMOV/it_issue2_2017
https://www.nxtbook.com/ygsreprints/AMMOV/direction_septoct2017
https://www.nxtbook.com/ygsreprints/AMMOV/it_issue1_2017
https://www.nxtbook.com/ygsreprints/AMMOV/direction_julyaugust2017
https://www.nxtbook.com/ygsreprints/AMMOV/it_issue4_2016
https://www.nxtbook.com/ygsreprints/AMMOV/direction_mayjune2017
https://www.nxtbook.com/ygsreprints/AMMOV/direction_marapr2017
https://www.nxtbook.com/ygsreprints/AMMOV/it_issue3_2016
https://www.nxtbook.com/ygsreprints/AMMOV/direction_janfeb2017
https://www.nxtbook.com/ygsreprints/AMMOV/it_issue2_2016
https://www.nxtbook.com/ygsreprints/AMMOV/G68068_direction_novdec2016
https://www.nxtbook.com/ygsreprints/AMMOV/direction
https://www.nxtbook.com/ygsreprints/AMMOV/it_issue1_2016
https://www.nxtbook.com/ygsreprints/AMMOV/direction_julaug2016
https://www.nxtbook.com/ygsreprints/AMMOV/direction_mayjun2016
https://www.nxtbook.com/ygsreprints/AMMOV/it_issue4_2015
https://www.nxtbook.com/ygsreprints/AMMOV/direction_marapr2016
https://www.nxtbook.com/ygsreprints/AMMOV/it_issue3_2015
https://www.nxtbook.com/ygsreprints/AMMOV/direction_janfeb2016
https://www.nxtbook.com/ygsreprints/AMMOV/direction_novdec2015
https://www.nxtbook.com/ygsreprints/AMMOV/it_issue2_2015
https://www.nxtbook.com/ygsreprints/AMMOV/ammov_sepoct2015
https://www.nxtbook.com/ygsreprints/AMMOV/it_issue1_2015
https://www.nxtbook.com/ygsreprints/AMMOV/g51838_ammov_julyaug2015
https://www.nxtbook.com/ygsreprints/AMMOV/ammov_it_issue4_2014
https://www.nxtbook.com/ygsreprints/AMMOV/g50117_ammov_mayjune2015
https://www.nxtbook.com/ygsreprints/AMMOV/g49142_ammov_marapr2015
https://www.nxtbook.com/ygsreprints/AMMOV/ammov_it_issue3_2014
https://www.nxtbook.com/ygsreprints/AMMOV/g47631_ammov_janfeb15
https://www.nxtbook.com/ygsreprints/AMMOV/amsa_sourcebook_2015
https://www.nxtbook.com/ygsreprints/AMMOV/ammov_it_issue2_2014
https://www.nxtbook.com/ygsreprints/AMMOV/g45738_ammov_novdec2014
https://www.nxtbook.com/ygsreprints/AMMOV/g44436_ammov_sepoct2014
https://www.nxtbook.com/ygsreprints/AMMOV/ammov_it_issue1_2014
https://www.nxtbook.com/ygsreprints/AMMOV/g42909ammov_julaug14
https://www.nxtbook.com/ygsreprints/AMMOV/g41053_ammov_mayjun2014
https://www.nxtbook.com/ygsreprints/AMMOV/AMMOV_IT_2013_V4
https://www.nxtbook.com/ygsreprints/AMMOV/g39757_ammov_marapr2014
https://www.nxtbook.com/ygsreprints/AMMOV/g39097_ammov_janfeb2014
https://www.nxtbook.com/ygsreprints/AMMOV/AMMOV_IT_2013_V3
https://www.nxtbook.com/ygsreprints/AMMOV/AMMOV_IT_2013_V2
https://www.nxtbook.com/ygsreprints/AMMOV/g38015_ammov_direction_novdec2013
https://www.nxtbook.com/ygsreprints/AMMOV/P36576_AMMOV_IT_2013
https://www.nxtbook.com/ygsreprints/AMMOV/g36367_ammov_direction_sepoct2013
https://www.nxtbook.com/ygsreprints/AMMOV/g35144_ammov_direction_julaug2013
https://www.nxtbook.com/ygsreprints/AMMOV/AMMOV_IT_2012V4_FP2
https://www.nxtbook.com/ygsreprints/AMMOV/g34598_ammov_direction_mayjun2013
https://www.nxtbook.com/ygsreprints/AMMOV/g33091_ammov_marapr2013
https://www.nxtbook.com/ygsreprints/AMMOV/g31497_ammov_janfeb2013
https://www.nxtbook.com/ygsreprints/AMMOV/g25957_ammov_direction_mayjun2012
https://www.nxtbookmedia.com