Our passionate commitment to identify the areas costing your business loss, to benchmark where you are at, and then to track results.
When you know you are getting there, you get there even faster
The best results come about when you have a starting point and a goal. There’s all sorts of creativity and innovation along the way. We want your employees to feel it in their gut and in their heart. That’s the first reward. We want management, the Board, and the investors to see it on quantified reports. That’s the second reward.
Some losses are very easy to quantify. You know exactly how many sick days were paid out last year. Some are more difficult to quantify but just as real. For example, how many days were employees at work sick and how did that affect productivity?
We Measure the Starting Point
Benchmark. Sounds boring. Doesn’t have to be. Actually it’s a lively process with insights coming your way.
How Much Could You Gain by Not Losing It? We study what’s currently being lost because that is the starting line.
Some losses are easy to measure, for example the number of sick days paid out. Some are just as costly but less visible, like the number of days employees are at work sick, with less productivity. Some factors are objective: The turn-over rate is X percent. Some are subjective: We like working here (or we don’t).
…quick answer from the experts. A lot of people have developed the answer for you. Data from the F.B.I., Commerce Dep’t, Labor Dep’t, U.S. Chamber of Commerce, Integrated Benefits Institute, insurance industry and security industry shows that businesses lose 15% of revenues to multiple areas of loss.
…and that means. Since the average corporation earns 10%, it means they really earned 25%, then lost 15% to workers comp, sickness, theft, liability lawsuits… ended up with 10%. We know that other training lowered your losses to a threshold where it won’t go any lower. We know why and we’ll take it down further. Our original research and innovative techniques dig deeper to get to a new level of change.….and that means. We can’t eliminate all the losses. But a 25% reduction is a realistic goal. So, 25% of the 15% of revenue lost is 3.75%, roughly 4%. For the average company, adding 4% of revenues back onto the 10% net profit = 14%, which is a 40% increase in profit.
For a hospital where the average margin is 2.5%, the added 4% means a 160% increase in their margin! (2.5% + 160% = 6.5%) For a company with a profit margin of 20%, the added 4% is a 20% increase. Still respectable!
The Losses You Didn’t See. For example, only one in twenty eight employee thieves are ever apprehended. And they steal more than inventory. They steal the spirit and soul of the business. As the first step we’ll look at all the areas of loss.
Think Directly About Indirect Costs. A study by Liberty Mutual showed the real cost to employers of a workers comp incident is five times the direct insured amount paid out. This includes temp worker, advertising for replacement, training, managers’ time in reports or court, adverse public and customer relations, and effect on morale of others. That’s not the whole picture however.
It still didn’t take into account the effect such losses have on us as humans. The reality is that when bombarded by attacks or busy putting out fires we clam up into a shell. You lose creativity, teamwork and enthusiasm. The flip side of losses, meaning what happens when you get a handle on them, is the gaining of positive ground you never had before. There’s huge potential in that.