Virtually every company is 30-40% unprofitable by any measure, while 20-30% provides all the reported profits and subsidizes the losses.
My new book, Islands of Profit in a Sea of Red Ink, explains why this happens to so many companies at this point in history, and tells managers how to fix it.
Many managers make the big mistake of assuming that a profitability turnaround must be a disruptive, one-time event. In fact, the most effective turnarounds are more like deciding to get healthy by eating better and getting regular exercise. When managed well, results come surprisingly quickly and the management team forms a culture of profitability that gets stronger and stronger.
A few weeks ago, I gave a talk and presentation to a group of top executives in Milwaukee at an event arranged by a terrific organization, 800CEOread. In the talk I highlighted some of the key points in my new book. Here’s a link to the presentation: