The ‘One Number’ approach to transforming the profitability of your business – Full day retreat
This is all about how the numbers in a business may be used to inform the management decision making that leads to increased profitability.
The ‘One Number’ approach recognises that there is a limitation that will inhibit growth in every type of business. Correctly identifying this limitation and designing the business around it can be the key to dramatically improving profitability whilst reducing pressure on resources and then allowing sales to be improved.
It is based upon and extends the original work of Brian Warnes. He was the architect of the concept, which connects the ‘Critical Resource Limitation’ to the financial drivers of a business through the break-even point: which is that sales turnover figure that will give a profit that exactly balances the overhead expenditure.
Understanding the ‘One Number’ target that will deliver the planned profitability informs sales and marketing by highlighting those product and customer combinations that will maximise the value added from sales and operational constraints.
Price flexing to win deals that give the best possible return for the business resources always results in a rapid and dramatic improvement in profitability whilst simultaneously ‘relaxing’ operations and releasing them from the ‘Busy fools’ treadmill.
The technique has never failed to increase the bottom line profitability and sales of any business where it has been fully applied.
Full day retreat where by an expanded version of the workshop format and the intensive application of the ‘One Number’ techniques, participants will drill down into their own companies. This will result in a deep understanding of the specific underlying drivers of profitability, growth and cash. This fully structured workshop includes:
- Introduction, overview and scoping of businesses in the room.
- Review of the accounting break-even point and exercise followed by own company worksheet completion.
- Concept of the ‘Critical Resource Limitation’ and group exercise followed by own companies exploratory discussion and worksheet completion.
- Case study illustrating how the break-even point and critical resource limitation are linked to create a pricing and sales plan leading to improved profitability.
- Illustration of ‘One-number’ decision making leading into completion of individual company worksheet exercises.
- Exploration of the impact on pricing and sales for companies in the room.
- Action planning.
- Summary, questions and answers.
- A thorough understanding of how the ‘One-number’ technique is derived from company accounts and operational constraints to influence pricing policy and the way the business sells.
- A ‘Profit Builder’ worksheet completed for their own company that gives a clear insight into what needs to be done in the business to improve profitability and sales when they leave the session.
- An action plan for profitable growth that is SMART: specific to the individuals company, produces attainable and measurable results that are actionable within ninety days.
- An implementation road map incorporating:
- Analysis and mapping.
- Dynamic pricing.
- Planning and tracking.
- A copy of the presentation, including sample calculations and key action points will be provided along with a copy of ‘Boosting Sales: increasing profits without breaking the bank’.