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Jarmo Manninen & Muutosdraiveri Oy
When and how should a company seek external help to develop profitability?
When a company first encounters a situation where the company's cumulative profitability targets are not being met, the company should use its own resources to create a concrete action plan of corrective measures and implement it in such a way that the company will achieve the company's cumulative profitability targets within the specified timeframe. If the company is unable to achieve the company's cumulative profitability targets within the specified timeframe, the company should seek the right kind of external expertise with the right kind of agreement to remedy the situation.
When profitability problems are detected in companies, companies typically either convince themselves that the profitability figures will improve in the future without any concrete grounds, or they invent external causes that will fix the company's profitability problems on their own. Time itself does not fix a company's profitability problems, and they do not fix them on their own. A company's profitability problems can only be corrected by taking the right corrective action and in the right way.
Too often, companies that are unable to achieve their cumulative profitability goals think that external help cannot be used because it causes additional costs for a company that is already struggling with payment difficulties. This is definitely the wrong way of thinking. It is worth remembering that every moment that is lost in correcting a company's profitability problems often costs the company many times more money in lost profits than what it costs to use an external expert.
When a company acquires the right external help to solve profitability problems, the changes it produces can help the company achieve concrete, measurable performance improvements many times over the costs that using an expert would cost the company. When choosing an external expert, creating credible performance effects is much more important than the images of the expert's abilities that arise from the expert's statements. The expert used by the company must be able to promise and guarantee that he or she can find change measures with measurable results that will help the company fix its profitability problems. If the expert cannot responsibly promise this, then the company should not use such an expert.
Did the above things make you think?
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I hope that you were interested in this matter and that you can continue to be involved.
I have written four books on creating the conditions for the company's financial management, and they are available in well-stocked bookstores and online bookstores in Finland, for example from BoD (Books On Demand) at:
https://kirjakauppa.bod.fi/catalogsearch/result/?q=jarmo+manninen
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