Profit Requires Strategy & Action
Successful managers in commercial and industrial enterprises are profit minded and people driven. But it is really the profit-minded and team oriented manager who are best placed to move forward on a sustainable trajectory. Embedded in this journey is also an absence of self absorbed greed or love of money itself.
Profit in business is a universal standard for performance measurement which is well accepted by managers and also by those key stakeholders who judge their performance.
When we look at service as another KPI, this also must be underpinned by profit, and for all the criticisms which may come against this, it is sill the best standard of managerial success and overall performance.
Therefore, all results at the end of each fiscal period defined as profit are under the direct control and decisions of managers. i.e. expenses associated with operations, R&D, training, human resources, R&M, quality, engineering, purchasing, all effect profit in any accounting period. But all are under the control of management to spend monies out of income to ensure the future growth and sustainability of the business.
Profit, therefore, is much more than an accounting term. It is a positive standard of measuring the effectiveness of management decision making and their ability to achieve budget parameters with professionalism and innovative/creative thinking.
Profit is also the outcome of management initiatives via people who respond to their leadership styles so as to carry through to the overall goals of the organisation.
Managers also achieve their greatest profit results through leading by example, having a best practice communications policy, have a fervent desire to train all employees, have a promote from within policy, and are willing to learn by other successful companies around the world.
Profit, sustainability and growth of any business today and into the future, will demand that managers be able to make things happen in circumstances where outside variables have a strong influence. i.e. public opinion, political uncertainty, overseas emergence, and union strength.
Managers of today have a strong responsibility to social responsibility in the community and equal opportunities.
Good Management therefore means an innate ability to be pro-active and not re-active to both internal and external forces.