Profit Makers & Takers - Part 4

Profit is driven by priorities. Whether stated or not, priorities are always perceived and present.


Priority setting should be driven by past performance, current budget, future vision, and relevant performance benchmarking.


Trust-worthy practices, service value, and profitability always top the list of priorities. Setting those priorities and selecting processes, systems and behaviors to support those priorities is the work of management.


Effective management requires implementing performance controls that enable real-time decision support and facilitating value creating behaviors throughout the practice. Managing behaviors is a critical responsibility of management.


There are only four ways to change behaviors.
1. Positive reinforcement – get something you want.
2. Negative reinforcement – avoid something you don’t want.
3. Punishment – get something you don’t want.
4. Penalty – lose something you have.


Only positive reinforcement will contribute to sustainable practice performance.


Profitability is driven by behavior. Behavior is driven by management. Management is driven by vision and values and make operational by processes and systems.


Profitability is the measure of management effectiveness in decision making, communication, and leadership. What are your priorities? What is your score?


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Bob


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Performance Builders