Yesterday's The Globe and Mail, Globe Investor section headline read, "It's all about the revenue: cost-cutting isn't growth". The author of the article, David Parkinson, emphasizes the importance of revenue growth over short term earnings for long term success. This principle resonates with WESI as we have continued to assist our clients with strategic, consumer-centric growth. But, we also reinforce the need for productivity enhancements through process reviews which can eliminate unnecessary or even duplicate costs in operations.
Cash is the life blood of every organization, large or small, local or global, which means sustaining a net cash growth over time. In other words, marginal revenue must grow faster than marginal costs. Too many publications are totally fixed on quarterly EPS so we are pleased to see writers highlighting the balanced perspective when assessing a business performance.
This is the double edged strategic sword of productivity, i.e. grow revenues and contain costs. Even during difficult economic times it is always possible to maintain the balanced objective with innovative thinking and team work. We see where stagnant situations can be turned around regularly to build growth even if there seems to be none. Remember it's all about proactive, innovative focus by everyone in a branch, area or the corporation as a whole i.e. "What new sources of revenue have you create today?".
Trackback Link
http://www.whereeaglessoar.com/BlogRetrieve.aspx?BlogID=349&PostID=59884&A=Trackback
Trackbacks
Post has no trackbacks.
Comments
Post has no comments.