For the average corporation earning 10% profit, just a small reduction in the routine losses would be the easiest way to improve the bottom line. The reason is simple.
A study of data from the F.B.I., the U.S. Chamber of Commerce, the Commerce Dep’t, the Labor Dep’t, the National Federation of Independent Businesses, and the security and insurance industries shows that corporations lose about 15% of revenues to multiple areas of preventable loss. The figure does not even include fraud and embezzlement, and motor vehicle accidents.
Eliminating all the losses is impossible. But eliminating the lowest-hanging-fruit, the easiest things first, could realistically reduce these losses by one-quarter. That would equate to about 4% of revenues going back into the profit column. That means the 10% profit becomes 14% profit, which is a 40% increase. This will vary, industry by industry. For a supermarket or a hospital, both of which operate typically on a 2-3% margin, the same saving represents a 260% increase in profit! (6.5% / 2.5% = 260%).
Why is it that a certain “background level of loss” is accepted as just normal? Why is it even defended to a certain degree, with people saying things like “We already have a program for security (safety, insurance company review)?” It is because people don’t know what to do and because the power to change things has never been put into the right hands, which includes the hands of everyone in the company.
R3Results training involves everyone in these areas which affect the quality of life, the security, safety and wellness of people, and the protection of the company. This is the appropriate level. We have to answer the W.I.F.M. question (What’s in It For Me), enable input from employees where it was previously closed-out, get a sense of pride and a visualized, stated, pledged-to goal, and have this all come freely and organically from the employees themselves. Who wouldn’t want to make their workplace happier, safer and more rewarding?