Do You Think This Is True of YOUR Company?
Two Astonishing Facts (These Are Probably True of Your Company Too):
Nearly 40 percent of every company is unprofitable… by any measure.
20 to 30 percent of every company is so profitable that it provides all the reported earnings — and subsidizes the losses — of the entire business.
We now live in the Age of Precision Markets, yet most of the management processes taught in business schools were developed for the prior Age of Mass Markets.
Today’s savviest managers are exploiting this disconnect by rethinking strategy and, in the process, developing fresh approaches to customer relations, operations, and metrics.
In his book Islands of Profit in a Sea of Red Ink, Jonathan Byrnes reveals an uncomfortable truth: It’s possible for every manager to meet or exceed budget targets and for the company to still have an enormous portion of its business remain unprofitable.
In addition to providing a practical, step-by-step guide to raising net profits by as much as 50 percent, Dr. Byrnes explains and then rejects such harmful myths as:
- Revenues are good, costs are bad
- All customers should get the same great service
- If everyone does his or her job well, the company will prosper
Every business has enormous potential waiting to be unleashed; this book offers bold new strategies to help you find and grow your islands of profit.
If 40% of your business, by any measure, is unprofitable … here is how you begin a process of fixing it:
Also, check out these additional resources:
- This is a bold, insightful article by Jonathan Byrnes: Profit-based Segmentation, Omnichannel Retailing, and Same-day Deliveries.
- I highly recommend his book: Islands of Profit in a Sea of Red Ink.
I have been a fan of Byrnes for over 14 years. His approach is bold and effective and he is very practical in his recommendations.