If there’s a recession coming, one way to get survive and thrive is to cut costs. But maybe a better way is to focus on “profit improvement” and not just cost cutting What’s the difference? You can find out in one of the best books on this topic by Cost Reduction Lecturer at MIT, Jonathan Byrnes: “Islands of Profit in a Sea of Red Ink: Why 40% of Your Business is Unprofitable and How to Fix It.”
Before you invest in the book, check out this short article in Chief Executive Magazine by Mr. Byrnes that introduces a key concept in his book; that we are living in the Age of Diverse Markets, and initiatives to increase profits must take account of this fact. He’ll introduce you to the concept of a Profit Health Index.
This 10-minute video of an interview with Mr. Byrnes is also interesting.
“Islands of Profit” transcends the usual tactical cost cutting activities and takes executives to a more strategic, thoughtful, and lasting approach to improving profits. It doesn’t require accounting or financial skills to understand and could be a good profit improvement manual for your entire team.
