How are you planning to grow your business? Do you believe more sales provides the right approach to make business better? Do you think that selling more creates more demand?
A different journey and track is Affordability. Affordability provides increase in demand through the delivery of value, at lower cost and price, while increasing responsiveness and quality.
Selling more under a system fraught with waste and inefficiencies puts an organization on a path of eventual failure. If on-time delivery challenges exist with quality issues and excessive cost, increased sales puts additional pressures on a system that misses deadlines and customer expectations and requirements.
It has been calculated that it takes 40% more sales to increase ‘Net after tax Profit’ by 40% … but, when applying Affordability, most organizations can realize a ‘Net after tax Profit’ of 40% improvement by affecting a 20% reduction in Non-Core indirect costs and waste. This provides money for re-investment in value added areas, increases speed and quality, and above all, increases demand.