Avoid losing millions in revenue and profit

From Howard Shore’s new book Your Business is a Leaky Bucket, there are many ways that businesses lose revenue and profit such as the following:

1. Mediocre hiring practices:
   • Hiring and Keeping B and C players in critical positions
   • Leaving critical positions vacant
   • Lacking a standard interview process
   • Excessive turnover/Regrettable turnover
2. Lack of alignment
   • The leadership team lacks trust and accountability
   • Goals and expectations are ineffectively communicated
   • Actions without purpose
   • Meetings have devolved to activity speeches versus productivity discussions (sample meeting agendas; Bus. Resources section nos.13 &14)
3. Chasing revenue anywhere and everywhere
   • Lack of targeted, differentiating strategy
   • No or ineffective Sales playbook and process
   • Inability to say “No” to the wrong customers/deals
   • Lack of financial transparency

1. Create a system to find and evaluate all the leaks. I recommend the CFO be in charge of this effort and part of his/her job description. You can start with the aforementioned list. Your P&L and B/S are also excellent places to look for leaks.
2. Institute an action plan to plug the leaks you find.  President/COO is the best likely candidate to lead this process.  Every leak should have an owner that comes up with a plan and date for completion.
3. Create a weekly meeting to hold everyone accountable and offer assistance to anyone who needs it.  I recommend that the CFO run this meeting. Spend time celebrating progress but spend most of the time completing the action plan on time.  This is a team effort with everyone pitching in when others ask for help.