dr. jonathan byrnes hbs, dba, mit, fmr HAA President
"Three Rules for Doubling your Profit Peaks and Reversing your Profit Drains"
Fireside Chat and Informal Presentation on Core Profit
January 7, 2021 5pm by invitation
Dr. Byrnes returns to Phoenix to follow up on his well-attended April presentation. Who is not helped by learning how to recognize core profit areas and inessential time-wasters? Byrnes is an energetic researcher and bountiful entrepreneur. Drop in to a wonderful picture of how businesses are positioning and setting goals given new developments on the landscape.
Here's how Dr. Byrnes characterizes this research which has resulted in a book to be published in 2021.
"Even in today’s crisis, managers can create surprisingly large profit gains by growing their profit core – selectively increasing the profitability of their current book of business. This has enormous leverage: in most companies, 10-15% of the customers generate 150-200% of the reported profits, while 15-20% of the customers erode 50% or more of these profits. The remaining 65-75% of the customers produce only minimal profits or losses. For example, if a typical company increases its Profit Peaks by 20%, and converts 20% of its Profit Drains to Profit Peaks, it will boost its net profits by over 50%. Yet, this affects only 10-15% percent of the customers.
Managers can grow their profit core in two concurrent modes: tactical improvements and strategic improvements. Tactical improvements reflect your ongoing process of bringing your customers up to your own best practice, while strategic improvements produce major, long-run changes in your customer profitability and differentiation.
The research is focused on helping business people to identify profit peaks and profit drains; how to bring all of your customers’ profitability up to your own best practice; and how to make quantum improvements in your best practice profitability by improving your customer value footprint or lowering your cost to serve." Several actual case examples are used.
HCPhx note: 1. Offered without charge to sister clubs of the HAA Southwest Region (Utah, Nevada, New Mexico, and Colorado/Wyoming), HBS AZ, and Phoenix Ivy Council 2. Did you know Byrnes is a former head of Harvard Alumni Association?