Sustainable profit growth

A strong corporate DNA, differentiation and adaptability to change are keys to success for any company aiming to achieve sustainable profit growth. It’s up to you to take this aspect as far as possible. According to research, typical challenges for CEO’s striving for sustainable profit growth include:

• Customers become increasingly demanding
• Globalisation is putting pressure on prices and margins
• Short-term solutions standing in the way of long-term interests
• In fast-growing companies, head count tends to increase
  faster than profit growth
• Cost structure is too high
• Attracting and retaining talented employees
• Product life cycles are continually decreasing;
  R&D expenditure increases as a result
• Product portfolio is too extensive compared to the size of the company
• High cost of sales versus low hit rate

Our customers implemented the following capabilities

Perpetos clients have managed to establish sustainable profit growth, by implementing the following capabilities:

• Identifying solutions based on the pains and needs of customers
• Implementing a business strategy that weakens competitors’ positions
• Introducing scalability; organisation and staff become more adaptive to change
• Sales and Marketing alignment
• Hiring and retaining staff who fit in the DNA of the organisation
• Creating an environment that promotes living up to the DNA
  and improves involvement, self-development and knowledge sharing
• Start a cross-departmental way of working
• Replacing ‘competence-based hiring’ by ‘DNA-based hiring’
• Giving all employees KPI’s and explaining the impact of their actions
  on the company’s long-term success (‘profit contribution dashboard’)

The result

A year after having implemented most of the above capabilities, an international operating software solution company achieved a double digit revenue growth with a profit which was growing faster than the topline.