Profitability Revolution Paradigm
Company Owner #1 was really liked by his employees. His employees should like him. Employees had no controls over how much work they accomplished and how they spent their time. No one checked time cards or what employees were really accomplishing. There were no repercussions when employees “didn’t follow the rules.” The owner was afraid that his employees would leave and he couldn’t replace them.
The business owned the owner. He was working really long hours, had cash flow problems, and a lot of stress! He never took the time to study his financial statements and know the numbers. He was struggling and could never seem to get ahead.
Company Owner #2 was also really liked by his employees. According to his employees, the company was “a great place to work.” The company had goals, rules, profit sharing, and many perks. They had job descriptions and the company managed by those job descriptions. They knew the rules and abided by them. They also knew the consequences, which were enforced, when they didn’t abide by the rules. The owner was not afraid to lose an employee.
Everyone in the company knew how he or she affected the company’s bottom line – which they shared in. The owner and managers reviewed financial statements each month and knew their numbers.
Both company owners were well liked – but for different reasons. Company #2 attracted productive employees who enjoyed sharing in the profits. Company #1 attracted non-productive employees who wanted to do as little as possible and still collect a paycheck. They knew they wouldn’t lose their jobs for not following the rules.
And, by the way, Company #2 was profitable. Company #1 was not. Company #2 demonstrates that you don’t have to be mean to be in the black!
So what do you do if you are like Company #1? First, realize that anyone “could be hit by a truck” today. Then what? You’d live with it and find a way around it.
The interesting thing that I am seeing is that the companies who are building create cultures have employees who brag about how good their jobs are. These employees find new employees for the company. Some of the companies I work with have no problems finding technicians because of the cultures they have built. They ARE company #2. You can be too.