Insights

You’ve got new customers, but your profits are at a standstill.  Year after year, you’re looking at your profit/loss statement and the profits have not changed.   So, what is happening because you know for a fact that you have been getting new customers daily?  The truth is….your company is experiencing a profit plateau.  Profit plateaus usually happen for two reasons, which are internal to your company.  Process bottlenecks and dissatisfied team members are the biggest two reasons for profit plateaus.  So, let’s dive into why.

Process Bottlenecks

·         Slow decision-making creates bureaucratic red tape for implementing new ideas.

·         Systems overloaded from outdated equipment and new customers.

·         Limited resources create inventory shortages because of wasted and misallocated resources within the company.

·         Too many manual processes and manual data entry

·         Inadequate training and no standard operating procedures in place

·         Poor communication channels because of the lack of communication or miscommunication about the company's new or old policies and procedures

Large companies have the above-mentioned process bottlenecks frequently and they go overlooked because of the excitement of having so many new customers and more work. Nevertheless, these process bottlenecks are driving you employees crazy.  Your employees are stressed out, overworked, and underpaid because of them.  So, internal customer satisfaction matters because it is the second reason your profits are plateauing in your large company.  Unhappy employees create low productivity because of low morale.  Then, this leads to disengagement and lower innovation, quiet quitting and then eventually high turnover.

So, let’s explore some ways to boost profits.

Improvements to manage cost/profit loss and increase process efficiency.

-          Streamlining processes to simplify them will reduce process bottlenecks.

-          Automating manual tasks will also save time and money.

-          Developing standard operating procedures for every process and training with them will create a positive training experience for quick and easy delegation.

Strengthening relationships within the company with an open line of communication

-          Improve Employee Engagement by asking for feedback often.

-          Implement Employee Feedback quickly to increase employee morale.

-          Create a positive work environment, where employees feel empowered to share ideas and take risks and recognize employee achievements.

By addressing these issues, large companies can overcome profit plateaus and achieve sustained growth and can scale quicker.