Why do you believe if a company makes just a 7% improvement in frontline sales it can double its profits? A great number of companies have less than a 5% profit margin. Most top line revenue that is generated by the frontline is “incremental revenue. This is the "icing on the cake" revenue. Rent, lights, equipment, management salaries etc are already paid for, so the cost of this revenue is minimal …so a 7% increase in top line revenue, can easily have a 5% profit in it…add this to the existing 5% profit and now you have doubled your profit.
Just how can a company improve its frontline sales, regardless of industry, product, service or price factors? Although all these factors will of course impact results, improvement is relative to current performance. For example, a $.15 improvement on the ticket average at a fast food restaurant is a game changer when their profit amounts to $.20 per ticket. There are basic human drivers of performance that are irrespective of the industry, product, price or service. People are driven to perform if they are in the right, positive, caring, and supporting environment. This helps companies attract the right people. These folks now are more apt to perform the right action. This happens by clearly defining, training and measuring the standards you are using, and then applying the right mix of financial incentives, recognition, and accountability to drive this expectation.
How should a company nourish its most valuable asset? This starts at the very top. It is a belief that in a world of fierce competition and commoditization the last and best hope in many cases for a competitive edge is the asset you have most influence over: the performance of your own staff. So how do you significantly improve that performance? The answers are all part of the Khoury Performance Equation.
What are the eight building blocks for success and which three need the most attention? The pillars of success lie in the Khoury Performance Equation, relying on the Right Environment, the Right Fit, and the Right Action. There are 22 individual elements in this equation. If I had to choose the three that need the most attention, it would be those that relate to hiring, firing and inspiring. Within the KPE, those actions relate to the Right Fit, the right incentive plan and the biggest gap that most companies have: holding people accountable. Of course if your measurement and reporting is faulty -- which is very common -- then you have to begin by fixing that.
How is what you do as a consultant different than what other trainers offer? We sell results; we do not sell training. We do not consider ourselves trainers. By definition a trainer earns his keep by training. We earn our keep by achieving bottom-line results, and we back that up by compensation options that are tied to the results we help generate. Although effective training is critical, alone however it has very little impact and will not stick unless the other important elements of the KPE are in place and implemented consistently over time.