I recently met a financial consultant, Jon Verbeck. Jon has an extensive background in finance and the processes. He works with business CFO’s focusing on solutions for growing profits and cutting costs. I received his newsletter yesterday with a link to his latest article Focus on Profits, Part 1: Decrease Costs. It’s a positive look at Capitalism really with a message of don’t be ashamed of making more money, it does a lot of good… or can…
One particular section about the challenges business owners face caught my eye because as I read it I was instantly reminded of the impact internal social networks can have on profits. Jon wrote:
As business owners, we have tons of challenges:
- Motivating the team (keeping all oars rowing in the same direction)
- Taking care of customers
- Forecasting production to meet anticipated customer needs
- Marketing our products
- Administrating a myriad of daily details like answering email, returning phone calls, and keeping paperwork up to date.
ALL of the above factors contribute to the “bottom line,” or profit.
So how are these challenges alleviated by stronger connections and collaboration inside an organization? Let’s look at each in order and feel free to share with your executives who always have their eye on the bottom line.
- Motivation is a result of having autonomy, mastery and purpose so says Dan Pink. A better connected company reveals their shared purpose (and is an opportunity for leaders to continually reinforce it), provides informal learning opportunities, and the professional growth that comes with it.
- A well informed, supportive team takes care of customers. Instant communication and questions answered between silos allows for the best and most timely customer support.
- Resources that have to be shelved and not leveraged is costly and wasteful be they people under-utilized of product not sold. When management and workers are connected inside and out they have their finger on the pulse of shifting demands.
- The best marketers are your own people and I don’t mean the marketing team! It’s those closest to the work, those who design, develop and deliver. If you have a powerful, meaningful offering and passionate people behind it, let them talk openly about what they do and why and share that with your community and customers.
- Sure, much work happens B2B for a business owner but a lot is also internal. A shift to social technology can reduce emails, phone calls and make some work more open and collaborative – not only improving the work but accomplishing it more quickly.
And yes, ALL the above do contribute powerfully, long-term and indirectly to profits. A connected company can scale much faster than one that is not. Identify the best talent to get the job done and extend your company’s influence in the marketplace with internal social technology.
