Profit Building: Cutting Costs Without Cutting People

Profit Building: Cutting Costs Without Cutting People

by Perry J. Ludy

Hardcover(1 ED)

$27.95

Product Details

ISBN-13: 9781576751084
Publisher: Berrett-Koehler Publishers
Publication date: 01/28/2000
Edition description: 1 ED
Pages: 162
Product dimensions: 6.12(w) x 9.25(h) x (d)

About the Author

Perry J. Ludy is a senior executive with more than 25 years experience with leading corporations and entrepreneurial companies. His consulting firm, LUDYCO, International specializes in helping domestic and international organizations develop creative approaches to building profits and managing innovation. Ludy also speaks, conducts seminars, provides corporate training, and consults on mergers and acquisitions. He has worked for leading US companies including PepsiCo, Inc., Procter & Gamble, and Imperial Corporation of America.

Table of Contents

Preface
1 What Managers Need to Know About Cutting Costs and Improving Profits
The Profit Improvement Paradox
Profit Improvement Paradox Test
Development of the Profit Building Process
2 Improving Profits: Better Ways Than Layoffs
The Downsizing Dilemma
Perpetuating the Profit Improvement Paradox Summary
3 The Profit Building Process
Just What Is PBP?
Summary
4 Choosing and Managing the Profit Building Team
Picking Your Team
PBT in Action
Tips for Choosing and Managing Your Team
Summary
5 Preparing Your Team and the Organization
The Organizational Complexity Predictor
PBT Preparation
Managing Change
Basic Innovation and Adoption
Summary
6 Generating Creative Solutions by Asking the Questions
From Questions to More Questions . . . To Solutions
Questions Brainstorming in Action
Start Asking Questions
Questions Brainstorming Jump-Start List
Answering the Questions
Facilitating Questions Brainstorming
Summary
7 Taking Action and Documenting Results
The Components
Ranking the Questions
Developing a Performance Improvement Plan
Why Document It?
Managing the Process Summary
8 Reviewing Progress and Following-Up
My Learning Experience
A Thorough Inspection
Timely Follow-up
Igniting the Process
Asking the Next PBP Question
The Manager’s Role in Implementing the
Innovation
Summary
9 Fifty Action Steps for Immediate Profit Improvement
How to Use the List
Ideas to Reduce Costs and Build Profits
Revenue
Other Personnel Costs
Summary
10 Sixty Further Steps to Cut Costs in All Areas of Your Business Communications Utilities
Professional Fees
Marketing
Public Relations
Insurance
Travel and Entertainment
Equipment Rental and Maintenance
Facilities Cost
Vehicles
Other Supplies and Services
Other Expenses
11 How and Where to Get Started
Appendix
Profit Building Process
Forms
Footnotes
Bibliography
Author Biography
Index

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Profit Building: Cutting Costs Without Cutting People 5 out of 5 based on 0 ratings. 5 reviews.
Guest More than 1 year ago
As one CEO said to me recently, 'No one who has a conscience ever wants to lay anyone off.' Yet the headlines are filled with announcements that companies are making massive cuts in jobs and employees. Recently, these cuts are even coming in the fastest growing technology industries. If people don't like to fire anyone and people don't like to be fired, why is this happening? Mr. Ludy argues that faced with missing budgets, the orders come down to spend less. Most people do know how to fire someone, so that option gets plenty of attention. Most people do not know many other ways to cut costs or boost profits in the short term, so the alternatives get little attention. Our firm did a study more than a decade ago that has been quoted in dozens of books and magazine articles. We found that the stocks of companies which did layoffs usually underperformed the stocks of companies that did not. By the end of four years, the differences were enormous in favor of those who did not do layoffs. Many people believe that this is because people do layoffs poorly, and many people do. But it also because the effort that goes into the layoffs could be better deployed in activities that increase profits. Usually, the bulk of those who go are the most employable people. They end up working for the competition, or having to be hired back as expensive consultants. How does either alternative help, while you are paying severance benefits as an additional cost? Mr. Ludy points out, based on his extensive experience, that most executives, managers, and supervisors know little about profit improving. Much of the recent training in companies has been on how to reduce errors, and that may help cut costs in main processes. That learning is often of little help in secondary processes and in areas where the processes need to be totally replaced, revised, or outsourced. Xerox and Motorola are both famed for their quality processes, and both companies are struggling now to make a profit. Mr. Ludy has developed a process described in the book that helps to get people focusing on the best opportunities, and following through to implement the opportunites that they select. He also provides lists of items which many companies ignore, to help get the process started. Although I have not seen this process working in practice, it is similar enough to elements of successful processes I have seen that is has credibility to me. If you decide to pursue this process, I suggest that you can improve upon it. First, rather than just having one small team working on this, you should try to get as many people working in small teams as possible. The most successful profit-improvement program I ever saw involved over 14,000 people in suggesting ideas. Second, be sure to compare the performance you are achieving in one part of the company with what you are achieving in another part of the company in the same activity. Most large companies get their best ideas from benchmarking to their own best practices. Third, be sure to create an e-intelligence capability to get more information to everyone about how the company is performing. E-Business Intelligence is a book that can help you understand this point
Guest More than 1 year ago
Often, I study business books by U.S. authors in an effort to find a way to help me with different aspects of my business in Mexico. Interesting titles and concepts at first peak my interest, but then leave me disappointed because of their limited adaptability in the Hispanic/Latino culture. This book is the exception. The majority of Profit Building's process can be implemented immediately for improved results in team building, creative problem solving, cost reduction, and profitability improvement whether your business is in Mexico City or New York City. Profit Building is an important book because it shows how a simple process can be enormously effective in any company, in any part of the world. I strongly recommend it for any executive who seeks innovative ways to improve profits and successfully compete in business today.
Guest More than 1 year ago
This book was easy to read. The message of how to achieve continuous profit improvement through cost reduction strategies is simple, yet powerful. The examples noted by the author help to crystallize how each step in the process can be successfully implemented while validating your record as an effective leader and innovative thinker. I believe there are many business leaders today who would benefit from reading this book. Ludy offers insight to some of the obstacles business leaders face today in developing effective strategic plans to help sustain long-term profitability. He presents the strategies with a humanistic view, recognizing that people come from different backgrounds and have unique thoughts about how to achieve the same goals. The book shows how everyone can make a valuable contribution to a company¿s bottom line.
Guest More than 1 year ago
I have had the distinct pleasure of seeing Perry Ludy's ideas put into action while working with him at both PepsiCo and Envirotest Systems, and I know they really work. I highly recommend this book to anyone interest in going beyond team training and empowerment to directly improving the bottom line in your organization. Perry's 'Questions Brainstorming' technique offers an excellent method for managers to improve both the quantity and quality of questions and answers generated in a team-friendly environment. He offers many ideas for getting a team and organization energized towards improving profits using this unique approach. If for no other reason, you should consider buying this book because it has dozens of cost-saving and profit increasing suggestions in a wide variety of areas that can immediately impact your business. Simply put, Perry's processes work and the results will amaze even the most skeptical.
Guest More than 1 year ago
Perry Ludy has written a dramatic wake-up call for any manager responsible for bottom line results. In recent years we have learned how to improve most business processes significantly using work redesign, teams, quality and other tools. But few managers apply these proven approaches to profit building as a standalone process. From his own extensive experience managing both staff groups and a variety of line organizations, Ludy provides practical guidance for involving employees in focused cost reduction and profit building initiatives. He points us toward new stands of excellence for managing in this twenty-first century.