There Is No Accounting System for Opportunity...
Using numbers from your financial system, you report actual production but NOT production losses… net revenue but NOT lost revenue… actual costs but NOT avoidable costs… net income but NOT invisible losses already subtracted out. You manage budgets and projects that include losses you NEVER SEE! It is even possible to meet budget and make a profit year after year while losing millions of dollars!
Millions of dollars can be hidden from decision-makers. How can executives and management teams be unaware of this much missing profit? Because… there is NO ACCOUNTING SYSTEM for OPPORTUNITY!
Your financial system contains dollars for business activity (what actually happened)… dollars for sales you made to customers, dollars you spent to pay your people and keep equipment running, dollars that you spent to fix problems and dollars you reported as profit.
Dollars left on the table represent untapped earnings potential… missed opportunities that separate you from “best possible” performance, dollars linked to What’s Not Working, What’s Not Happening (but could be), What’s Missing, What’s Lost, and What’s Available But Hidden (capacity). These dollars are either missing from the general ledger or buried by the general ledger structure, which is why leadership teams never see them.
The good news is that dollars “left on the table” can be found, quantified, prioritized and used to convert profit potential to reported profit for FREE! Here are 15 NEW POSSIBILITIES with data for dollars “left on the table”:
- You would learn that problems perceived as “small” can be worth a million dollars.
- You could create urgency to fix problems that were overlooked, ignored or had low priority.
- You could use equipment losses to make smart changes to the way you manage assets.
- You would find production losses NOT CAUSED by production.
- You would know the true cost of delays and take action to reduce them in order of value.
- You would be able to perform “surgical” cost reduction to eliminate invisible cost overruns.
- You could evaluate the achievability of budget targets.
- You would feel confident about capacities when designing a plant or approving capital.
- You might postpone expansions or avoid placing an expansion in the wrong place.
- You would learn that your organization CAN CREATE losses.
- Your people would have a hard time “choosing” to NOT work together to solve problems.
- You could assign dollars to weaknesses in the organization and corporate culture.
- You would learn how management interactions can result in unintentional losses.
- You could have honest conversations about “what’s not working” in your company.
- You could use loss data to open communications and build trust with your people.
By knowing how to tap the dollars you are leaving on the table, you have access to a FREE POOL OF PROFIT POTENTIAL just waiting to be captured!
About This Contributor
The VOICE OF OPPORTUNITY in Business
There is NO ACCOUNTING SYSTEM for OPPORTUNITY, but Kay Sever can show you how to quantify the dollars you are leaving on the table and convert them to profit! Kay has helped leadership teams find/capture >$100,000,000 of hidden profit potential.