3 Simple Ways to Improve EBITDA

In 2012, too many organizations will throw money down the toilet.  Again.  How?

Improve Your Bottom Line

Improve Your Bottom Line

  • their leaders believe that disengaged employees are few and far between
  • managers get too busy to use even the simplest practices to engage people
  • no one measures bleeding cash when top performers go to the competition, or loyal employees glaze-over
 In Dr. Neil Witmer’s recent book, I Get It!, he illustrates the importance of simple fundamentals.  Even talented leaders become preoccupied and fail to do first-things-first.  The work At Witmer & Associates  with employee engagement shows significant EBITDA potential from rooting out pockets of alienated employees, clumsy managers and preoccupied leaders.  Many organizations have shown a 6- to 7-figure financial impact by improving engagement.
 Although there are dozens of best practices to improve engagement, three of them consistently float to the top of the list as the simplest and most fundamental:
1.  Over-communicate—Whether you are CEO or supervisor, you must be a “broken record” for strategy, priorities and reasons for decisions.  Employees are not stupid, but they need constant reinforcement.  Don’t assume that if you say something once or put it in the newsletter that people will get it, or remember it.  Even a well-designed strategy deployment system can be under-communicated.  Sadly, data shows that 20% of employees mistakenly believe that the senior team is incompetent, simply because they don’t communicate enough.

2.  Involve people in process—Whether it be LEAN, Kaizen or other methods, you can ”light up” teams of employees by involving them.  Some organizations use Kaizen as an engagement strategy, not just a process strategy.  Of course one benefit is efficiency and cost savings.  Another benefit is a measurable performance gain from employees who go the extra mile, because they wanna!

3.  Encourage confrontation—It’s been said that 85% of people on the planet are conflict-avoidant.  Managers dodge feedback…peers delay difficult conversations…people cover their asses.  Although conflict training teaches technique, training is not enough.  People respond even better when their manager encourages confrontation.  Skilled managers invite apprehensive people behind closed doors for straight-talk.  They ask pregnant questions in staff meetings, showing that personal motives are less important than quality, delivery, financial performance and customer satisfaction.

These three practices are simple.  They improve EBITDA.  And they make this game of business a whole lot more fun!

If you would like more information on the bottomline for your company, contact a senior consultant with Ember Carriers at (513) 984-9333 for a complimentary consultation to discuss your company’s needs.

Web: www.embercarriers.com|Twitter: www.twitter.com/embercarriers|LinkedIn: www.linkedin.com/in/mhladio

Source: Neil Witmer, Pinpoint Performance Blog, Witmer & Associates
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