We know that whether something is a cost or revenue depends on how you make use of it. For example, my mobile phone is not a cost but a revenue generator for me because I use it to get business from WeChat, Facebook, Whatsapp, Gmail and Blogs. Today I shall teach everyone the 5 steps that you can turn all your staff cost into profits:
Step 1: Convert All Your Staff into Low Maintenance Staff
Low maintenance staff are those that do not cost you money to maintain, like a low maintenance car. Common maintenance cost for staff include supervision cost, sick leave, correction of mistakes and discipline control.
Step 2: Convert Low Maintenance Staff into Winning Team Members
A winning team member is one that is on the same side as you and wins for himself and the team. One of the fastest way to make people work as a team is to reward them for participating and let them reap the rewards from team synergy. For example, instead of getting individuals to achieve their own targets, I get them to work together. With proper team leadership and management, the team would produce more results than the sum of the individuals. This is called team synergy
Step 3: Get Higher Quantity of Work from the Team
Instead of working at the usual targets, I set higher targets because the team now has synergy.
Step 4: Get Higher Quality of Work from the Team
Once the quantity is there, I focus on quality. This is like focus on profits instead of sales volume.
Step 5: Get Higher Value Add from the Team
This is to go one step further: not only do we have quantity and quality of work, we go for higher value. Like what Samsung is doing now for its mobile phones, Galaxy S6 Edge now sells at higher price than its competitor iPhone 6. The 6 ways to go for higher value is to focus on these 6 things: higher margin sales, higher productivity, lower expense ratio, improvement in cash flow, reduction in waste and rework and happier work life for all.
The following illustration easily explains the above.
Imagine I start with 10 Low Maintenance Staff. If I convert 70% to Winning Team Members, I have 7 Winning Team Members.
If these 7 Winning Team Members give me 10 units of quantity of work, and the work quality is 80%, I have 7 x 10 x 80% = 56 units
If each unit is worth $10,000, my profits is 56 x $10,000 =$560,000
How I Increase My Profits by 61% with Just a 10% Increase:
Start Increase Outcome
Low Maintenance Staff 10 10% 11
x x x x
Team Conversion 70% 10% 77%
= = =
Winning Team Members 7 8.47
x x x
Work Quantity 10 units 10% 11 units
x x x
Work Quality 80% 10% 88%
= = =
Work Results 56 units 82 units
x x x
Value Added $10,000 10% $11,000
= = =
Team Profits $560,000 $902,000
From here you can see that there is a leveraged increase in profits: with just at 10% increase in each of the 5 lines, we have a 61% increase in profits.
How do we double profits? Just increase by 15% as follows:
Start Increase Outcome
Low Maintenance Staff 10 15% 11,5
x x x x
Team Conversion 70% 15% 80.5%
= = =
Winning Team Members 7 9.26
x x x
Work Quantity 10 units 10% 11.5 units
x x x
Work Quality 80% 10% 92%
= = =
Work Results 56 units 98 units
x x x
Value Added $10,000 10% $11,500
= = =
Team Profits $560,000 $1,126,664
For details on how to work on the above, come for this best-selling course How to Be a Better Manager:
HOW TO BE A BETTER MANAGER
Dates: 4 Mondays 2 to 5.30 pm on 16/5, 23/5, 30/5 and 6/6
Fees: $599 each (for 4 lessons), $399 each for 2 and above (33% discount)
Venue: The Plaza 02-346, 7500A Beach Road (inside Parkroyal Hotel)
Venue: The Plaza 02-346, 7500A Beach Road (inside Parkroyal Hotel)
Enquiry: Miss Idah at 6225-1784 or email to hpa88@singnet.com.sg
Session 1: People Management Success (16 May)
1. Psychology of employees at work - how to make the best of them
2. Top 20 ways to motivate people without money
3. Inspiring Your People to Be their Best in 7 Ways
4. Concept of Filling Buckets
5. Anthony Robbins concept of 6 Human Needs in Management
6. Power of Validation per Paul Newman
Session 2: Team-building Success (23 May)
1. Blair Singer 6 Keys to a Winning Team
2. What is Perturbation and How to Push through
3. De-selection system of hiring people.
4. What to Do When You have the Wrong Team
5. GROW Model on Coaching your team to success
6. Exercise on how Teamwork can increase output by 3 times
* Bonus: Test on Do You Really Have a TEAM or TEFB?
Session 3: Leadership Success (30 May)
1. How all Managers can be Leaders NOW
2. Top 10 Keys of Effective Leaders
3. How to lead in difficult environment
4. Know what you want and get it
5. Five Ways to Effective Leadership: Have-to, Want-to, Body & Mind, Heart & Soul and Value Add
6. What to Do When Others Do Not Follow You?
* Bonus: Game on How to Do the Impossible (cut wood with paper)
Session 4: Management Communication and Negotiation (6 June)
1. Effective Communication in workplace
2. How to do High Impact Presentation and impromptu speeches
3. Influence People to Your Thinking
4. VAK Modalities of Communication (include Test)
5. Mastering the Art of Listening
6. How to negotiate for success.
7. Case study: negotiate with your customer for 20% price increase.
At the end of this program, you will be empowered to rise above all management challenges.
2. How to do High Impact Presentation and impromptu speeches
3. Influence People to Your Thinking
4. VAK Modalities of Communication (include Test)
5. Mastering the Art of Listening
6. How to negotiate for success.
7. Case study: negotiate with your customer for 20% price increase.
At the end of this program, you will be empowered to rise above all management challenges.
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