One of the main responsibilities of a senior level leader is to keep the company healthy and profitability is an important aspect of company health. The big challenge that many executives or higher-level management teams have is broaching the topic with their team. Let’s face it, focusing on profitability and profitability alone presents resentment within your organization. It sends a message of selfishness and quite frankly, turns employees off. If profitability is important to you (and it should be), there are other ways to focus on profits without talking about profits.
3 Ways To Increase Profits Without Talking About Profits
Challenge Your Team To Work More Efficiently
Having buy-in from the team on how the company operates means a great deal to employees and companies who run efficiently tend to have stronger profit margins. Use these two points to your advantage. Challenge your team to improve the way they work by introducing efficiency into their every day tasks. Allow them to define what that means, have them document their processes, and approve requests to purchase tools that help with efficiency. By tasking the team with the freedom to define the way they work, you automatically have their buy-in and every day tasks will begin to take less and less time.
Invest In Your Team
Introduce career development programs within your organization. By doing this, you show your team that you care and in turn, they’ll care about the health of the company. Encourage your team to learn and support their growth both professionally and personally. Investing in your team will not only get your employees caring about the company, but their longevity will increase. All of this directly impacts the bottom line.
There will probably be a time when it makes sense to discuss profitability with your team, especially if you also have visibility in place. Rather than run through a bunch of numbers and talk about profitability alone, educate your team on the subject. Keep in mind that most employees have no idea what you’re talking about and hear numbers only. Help them make the connection between higher level company goals and how their individual roles within the company impact those goals.
The Bottom Line
The big takeaway here is to break away from talking about profits alone. Stop demanding that the team increase profits when chances are, they have no idea what that means to them personally. Challenge, invest in, and educate your team through leadership development. Once these items are in place, everyone will feel connected and will have no problems celebrating the health of your organization.