Last week I was speaking with a group of achievement-minded contractors about their year end results.
I found that some of owners had companies that were performing to the industry average, and others were performing stunningly well. I call these exceptional owners High Profit Leaders.
What’s the difference between the best and those that performing “average”? I have studied many companies and developed 5 behaviors that the high-profit leaders are consistently employing (in order to achieve steady growth and consistently good results.)
Here they are:
Make the tough decisions. High Profit Leaders do not sit in the problem for long, or endure indecision. They don’t take small steps when big steps are needed, when it comes to solving issues with business units, sub contractors, service lines, personnel, etc.
Aim high to hit high. High Profit Leaders are not low balling bids, that is obvious! But it is more than that, they purposely do not try to be the middle ground, because that generally brings average (mediocre) results. They know that in order to hit high, they must aim high. This requires knowing who your Green Light Customer® is, and how to sell fo that niche.
Clear Team Results. High Profit Leaders are not managing to the whole, meaning looking only at their aggregate company results. Rather they are monitoring each service line, and each crew with clear simple metrics that each division and crew must hit. Metrics are kept simple, focused on controllable costs.
Shared Leadership. This is chapter six in my book, Become A Destination Company® and the best companies are following it, empowering their front line and middle management to co-lead and take ownership of their areas and results. It’s not enough to empower your company leaders, you must empower everyone potential leader to lead.
Ownership Thinking. This is from chapter seven, Creating an Ownership Culture, of the same book. This is achieved by gamefying your business, teaching your people how to keep score and win, and then share in the winnings. You must treat your people like owners if you want them to act like owners.
If you have not read my book yet, you can get the ebook here, no cost, happy holidays!
The market only sets the price when you are selling based on price or you are aiming to capture a very large share of the market; for everyone else, you can use these behaviors to enjoy extra ordinary results.
Your Challenge: Benchmark your company against other high profit leaders.
You become the product of the people you surround yourself with, so search out people to inspire you and share ways for breaking through your own ceilings.
Dinner on the final night of The Leader’s Edge peer group. We had a blast!
Regards, Jeffrey Scott!