{"id":3123,"date":"2013-06-26T16:03:52","date_gmt":"2013-06-26T21:03:52","guid":{"rendered":"http:\/\/chicagoexecutivecoaching.com\/smartleadership\/?p=3123"},"modified":"2024-05-27T13:13:31","modified_gmt":"2024-05-27T18:13:31","slug":"measuring-profit-model-engagement","status":"publish","type":"post","link":"https:\/\/chicagoexecutivecoaching.com\/smartleadership\/measuring-profit-model-engagement\/","title":{"rendered":"Measuring Profit Model Engagement"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3123\" class=\"elementor elementor-3123\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4dec1d1 elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"4dec1d1\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c6060d3\" data-id=\"c6060d3\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2fb97f4 elementor-widget elementor-widget-template\" data-id=\"2fb97f4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"template.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-template\">\n\t\t\t\t\t<div data-elementor-type=\"section\" data-elementor-id=\"12411\" class=\"elementor elementor-12411\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1255d61 elementor-section-full_width elementor-section-content-middle elementor-section-height-default elementor-section-height-default\" data-id=\"1255d61\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-66 elementor-top-column elementor-element elementor-element-6264de3\" data-id=\"6264de3\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-61125fc elementor-widget elementor-widget-theme-post-title elementor-page-title elementor-widget-heading\" data-id=\"61125fc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"theme-post-title.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Measuring Profit Model Engagement<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2c1117e elementor-align-center elementor-widget elementor-widget-post-info\" data-id=\"2c1117e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"post-info.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul class=\"elementor-inline-items elementor-icon-list-items elementor-post-info\">\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item elementor-repeater-item-fcfa45b elementor-inline-item\" itemprop=\"author\">\n\t\t\t\t\t\t<a href=\"https:\/\/chicagoexecutivecoaching.com\/smartleadership\/author\/lbwebmaster\/\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-far-user-circle\" viewBox=\"0 0 496 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M248 104c-53 0-96 43-96 96s43 96 96 96 96-43 96-96-43-96-96-96zm0 144c-26.5 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208-160s208 71.8 208 160-93.3 160-208 160z\"><\/path><\/svg>\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text elementor-post-info__item elementor-post-info__item--type-comments\">\n\t\t\t\t\t\t\t\t\t\tNo Comments\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t<\/li>\n\t\t\t\t<\/ul>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a17d19d elementor-widget elementor-widget-html\" data-id=\"a17d19d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div style=\"text-align:center;\u201d>\r\n<span class=\"bsf-rt-reading-time\"><span class=\"bsf-rt-display-label\" prefix=\"Reading Time\">\n\t\t<\/span> <span class=\"bsf-rt-display-time\" reading_time=\"2\"><\/span> \n\t\t<span class=\"bsf-rt-display-postfix\" postfix=\"mins\"><\/span><\/span>\r\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-70a0327\" data-id=\"70a0327\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-228f411 elementor-widget elementor-widget-theme-post-featured-image elementor-widget-image\" data-id=\"228f411\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"theme-post-featured-image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/chicagoexecutivecoaching.com\/smartleadership\/wp-content\/uploads\/elementor\/thumbs\/Money350-qon9i23y7810df5myfikmfkr1kvu93fi8zqiz9mvwg.png\" title=\"Money350\" alt=\"Money\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5492fe22 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5492fe22\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7e35bc1e\" data-id=\"7e35bc1e\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5482fb70 elementor-widget elementor-widget-text-editor\" data-id=\"5482fb70\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h3>Has &#8220;Profit&#8221; become either a Dirty or Unspoken Word Where You Work?<\/h3>\r\nIt is no secret that the reckless pursuit of profit can lead to win-lose scenarios. When the business media exposes examples of profit driven exploitation, the word &#8220;<em>profit&#8221;<\/em> gets a bad name. Does the word &#8220;profit&#8221; have negative connotations in your organization? How do you know? What happens to your company&#8217;s ability to <em>profit<\/em> when &#8220;profits&#8221; are perceived negatively in the minds of those who help create them?\r\n<h3>Pumping Up Profitability&#8217;s Perception<\/h3>\r\nIf you&#8217;re seeking to improve that perception, here is some wisdom from Peter Drucker on Profitability\r\n<blockquote>Profit is not the explanation, cause, or rationale of business behavior and business decisions, but rather the test of their validity. If archangels instead of businessmen sat in directors\u2019 chairs, they would still have to be concerned with profitability, despite their total lack of personal interest in making profits.\r\n\r\nA company can make a social contribution only if it is highly profitable.\r\n\r\nManagers must convert society\u2019s needs into opportunities for profitable business. That, too, is a definition of innovation.<\/blockquote>\r\nSo let&#8217;s agree that profits are essential as an organization seeks to create <em>wins<\/em> for all of their stakeholders. Then consider getting everyone committed to responsibly creating more profit. I recommend that you start by asking this simple question:\r\n<h3><img decoding=\"async\" class=\" alignright\" src=\"https:\/\/chicagoexecutivecoaching.com\/smartleadership\/wp-content\/uploads\/2013\/05\/money-mso.jpg\" alt=\"\" width=\"280\" height=\"177\" title=\"\">How Do We Make and Keep Money Here?<\/h3>\r\nWhen it comes to the rank and file, the answer to this seemingly simple question is more elusive than most executives realize. Assuming that <em>everybody &#8220;gets it&#8221;<\/em>, is a expensive and dangerous outlook.\r\n<h3>Profit Model Engagement<\/h3>\r\nAccidentally or intentionally every enterprise has a profit model: Processes for taking in more than you spend. What would happen if everyone in your enterprise could answer this &#8220;million dollar question&#8221; articulately with both an understanding and enthusiasm for their role in the process? If they can&#8217;t explain it, your model is more accidental than intentional. And if your profits are more accidental than intentional, they are easily jeopardized.\r\n<h3>The Profit Model Challenge<\/h3>\r\nIn Tom Peters&#8217; the business book classic,<a href=\"http:\/\/www.amazon.com\/In-Search-Excellence-Companies-Essentials\/dp\/0060548789\" target=\"_blank\" rel=\"noopener\"><em> In Search of Excellence<\/em><\/a>, he coined the acronym: <strong>MBWA<\/strong> which stands for <em>Management By Wandering Around<\/em>. My challenge for you is to wander around your workplace and randomly ask these <em><strong>million dollar profit model questions<\/strong><\/em>:\r\n<blockquote>\r\n<ol>\r\n \t<li>How Do We Make and Keep Money Here?<\/li>\r\n \t<li>How do you play a role in that?<\/li>\r\n<\/ol>\r\n<\/blockquote>\r\nI am willing to wager that you will be startled by the overall inability of your people to give you an articulate answers.\r\n<h3>Call Me a Capitalist Pig, but&#8230;<\/h3>\r\nIf your discovery is surprising, allow me to ask:\r\n<ul>\r\n \t<li><em><strong>What do you need to do to raise the status and perception of the word &#8220;profit&#8221;? <\/strong><\/em><\/li>\r\n \t<li><strong>What if you don&#8217;t?<\/strong><\/li>\r\n<\/ul>\r\nIf you&#8217;ve avoided engaging your people in your organization&#8217;s profitability, ask yourself: <em>Why? and How much money are you leaving on the table every business day?\r\n<\/em>\r\n<h3>Acknowledgements<\/h3>\r\nThe idea of educating and engaging your organization in your profit model comes from James Fisher&#8217;s book <a href=\"http:\/\/www.amazon.com\/Navigating-Growth-Curve-James-Fischer\/dp\/0976576600\/ref=sr_1_1?ie=UTF8&amp;qid=1371066246&amp;sr=8-1&amp;keywords=Navigating+The+Growth+Curve\" target=\"_blank\" rel=\"noopener\"><strong><em>Navigating The Growth Curve<\/em><\/strong><\/a>.\r\n\r\nPeter Drucker quotes are from Chapter 6 \u201cWhat is a Business\u201d in \u201c<a href=\"http:\/\/www.amazon.com\/Management-Responsibilities-Practices-Classics-Organization\/dp\/1412806275\" target=\"_blank\" rel=\"noopener\">Management: Tasks, Responsibilities, and Practices<\/a>\u201d\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Has &#8220;Profit&#8221; become either a Dirty or Unspoken Word Where You Work?<\/p>\n<p>It is no secret that the reckless pursuit of profit can lead to win-lose scenarios. When the business media exposes examples of profit exploitation, the word &#8220;profit&#8221; gets a bad name.  Does the word &#8220;profit&#8221; have negative connotations in your organization?  How do you know?  What happens to your company&#8217;s ability to profit when &#8220;profits&#8221; are perceived negatively in the minds of those who help create them?<\/p>\n","protected":false},"author":3,"featured_media":7670,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"Has \"Profit\" become either a Negative or Unspoken Word Where You Work? http:\/\/wp.me\/p1I2Yr-On","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpscppro_dont_share_socialmedia":null,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"default","_twitter_share_type":"default","_linkedin_share_type":"default","_pinterest_share_type":"default","_linkedin_share_type_page":"","_instagram_share_type":"default","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[200],"tags":[193,194,192],"class_list":["post-3123","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategic-thinking","tag-perception-of-profits","tag-peter-drucker","tag-profit-model"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/chicagoexecutivecoaching.com\/smartleadership\/wp-content\/uploads\/Money350.png","jetpack_shortlink":"https:\/\/wp.me\/p1I2Yr-On","_links":{"self":[{"href":"https:\/\/chicagoexecutivecoaching.com\/smartleadership\/wp-json\/wp\/v2\/posts\/3123","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chicagoexecutivecoaching.com\/smartleadership\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chicagoexecutivecoaching.com\/smartleadership\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/chicagoexecutivecoaching.com\/smartleadership\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/chicagoexecutivecoaching.com\/smartleadership\/wp-json\/wp\/v2\/comments?post=3123"}],"version-history":[{"count":0,"href":"https:\/\/chicagoexecutivecoaching.com\/smartleadership\/wp-json\/wp\/v2\/posts\/3123\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/chicagoexecutivecoaching.com\/smartleadership\/wp-json\/wp\/v2\/media\/7670"}],"wp:attachment":[{"href":"https:\/\/chicagoexecutivecoaching.com\/smartleadership\/wp-json\/wp\/v2\/media?parent=3123"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chicagoexecutivecoaching.com\/smartleadership\/wp-json\/wp\/v2\/categories?post=3123"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chicagoexecutivecoaching.com\/smartleadership\/wp-json\/wp\/v2\/tags?post=3123"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}