Islands of Profit in A Sea of Red Ink : Why 40% of your Business Is Unprofitable, and How to Fix It

Islands of Profit in A Sea of Red Ink : Why 40% of your Business Is Unprofitable, and How to Fix It

Book - 2010
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Penguin Putnam
Top companies around the world turn to MIT's Jonathan Byrnes to figure out where the profit is. Using his systematic process for analyzing profitability, they can quickly determine which parts of the business are worth expanding and which are just a drain on resources. Then, using Byrnes's "profit levers," they can turn unprofitable business into good business and good business into great business.

We now live in the Age of Precision Markets, yet most of the management processes taught in business schools were developed for the prior Age of Mass Markets. Today's savviest managers are exploiting this disconnect. They're rethinking strategy, customer relations, operations, and metrics, and overcoming internal resistance to constructive change. They also reject such harmful myths as:

* Revenues are good, costs are bad

* All customers should get the same great service

* If everyone does his or her job well, the company will prosper

Byrnes reveals an uncomfortable truth: It's possible, even easy, for everyone to meet or exceed their budget targets and for the company still to have an enormous portion of the business unprofitable by any measure. But profit levers can flip everything around. For instance, several leading companies have utilized profit levers to increase their sales by over 35 percent in their highest penetrated customers, while others have reduced their operating costs- and their customers' costs-by over 30 percent One company described in the book raised its net profits by over 50 percent in a three-year period. The book is a practical, step-by-step guide to achieving these results.

Every business has enormous potential waiting to be unleashed; this book offers bold new strategies to help you find and grow those islands of profit.

Random House, Inc.
Top companies around the world turn to MIT's Jonathan Byrnes to figure out where the profit is. Using his systematic process for analyzing profitability, they can quickly determine which parts of the business are worth expanding and which are just a drain on resources. Then, using Byrnes's "profit levers," they can turn unprofitable business into good business and good business into great business.

We now live in the Age of Precision Markets, yet most of the management processes taught in business schools were developed for the prior Age of Mass Markets. Today's savviest managers are exploiting this disconnect. They're rethinking strategy, customer relations, operations, and metrics, and overcoming internal resistance to constructive change. They also reject such harmful myths as:

* Revenues are good, costs are bad

* All customers should get the same great service

* If everyone does his or her job well, the company will prosper

Byrnes reveals an uncomfortable truth: It's possible, even easy, for everyone to meet or exceed their budget targets and for the company still to have an enormous portion of the business unprofitable by any measure. But profit levers can flip everything around. For instance, several leading companies have utilized profit levers to increase their sales by over 35 percent in their highest penetrated customers, while others have reduced their operating costs- and their customers' costs-by over 30 percent One company described in the book raised its net profits by over 50 percent in a three-year period. The book is a practical, step-by-step guide to achieving these results.

Every business has enormous potential waiting to be unleashed; this book offers bold new strategies to help you find and grow those islands of profit.

Baker & Taylor
Counsels businesses on how to restructure a company around profitable elements, explaining how to comfortably reach sales targets by eliminating areas that drain resources, in a reference that challenges common beliefs about such topics as cost, customer service and job performance.

Book News
Some 20 years ago Byrnes (management, MIT) discovered some significant facts about modern businesses: approximately 40 percent of every company is unprofitable by any measure, 20 to 30 percent provides the reportable earnings, and the rest of the company is only marginal--a pattern he has found in even the highest-performing firms in business. He created a systematic process for analyzing a company's profitability and developed a number of "profit levers" for turning unprofitable business into good business, and good business into excellent business without costly new initiatives. Combining his past monthly columns for Harvard Business School's Working Knowledge e-newsletter with other writings he offers a book for all levels of managers, in all sizes of businesses, explaining how to systematically improve a business, acquire the best customers, build managers' capabilities, and secure a company's future through thoughtful, effective management. Annotation ©2011 Book News, Inc., Portland, OR (booknews.com)

Publisher: New York : Portfolio Penguin, [2010]
Copyright Date: ©2010
ISBN: 9781591843498
1591843499
Branch Call Number: 658.1554 BYRNE
Notes: Includes index

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