How to Benchmark Your Strategic Resources for Maximum Profit
When a business owner decides to stop letting business happen to them and start making business happen for them, the first step is the diagnostic phase. But once the problems are identified, the real work begins. The Business Development Machine (BDM) implementation phase focuses heavily on the effective deployment of strategic resources.
These resources—human, physical, financial, and management—are the engine of your business. If they are not optimized, you are losing money.
The 80% Rule
To understand the importance of this phase, you must understand the financial reality of your operation. Expenses associated with variable and controllable resources represent over 80% of the cost of running a business.
This is a staggering figure. When you are operating in Survival Mode, fighting the daily fires of the "run around," these expenses are often poorly managed.
Management style becomes a residual process, and these variable costs bleed the company of its potential profitability.
The Greatest Opportunity
However, this 80% also represents your greatest opportunity. Because these expenses are variable and controllable, they create the greatest opportunity for gleaning predetermined profits.
Predetermined profit is the hallmark of an Optimized Mode business. It means you are no longer waiting to see what is left over at the end of the month. Instead, you have established standard operating procedures and financial veins of gold that dictate exactly how resources should be deployed to guarantee a specific return.
The 90% Performance Factor
How do you achieve this? Through rigorous measurement. The goal of the BDM Throughput Process Journey is to benchmark the deployment of strategic resources to a level of 90% performance factors.
This requires statistical process analysis. It requires measuring performance against your established standards and utilizing the concept of Kaizen—continuous improvement over time. When you hit that 90% performance factor, you have built a closely knit interlocking closed-loop system. You have transformed your business from a chaotic job into a smooth, easy-to-control, and highly profitable machine.
Are you ready to optimize your resources and capture your predetermined profits?
Take Control
Download The Purpose-Built Playbook today to discover how to benchmark your strategic resources and achieve a 90% performance factor in your business.
