May 28, 2018

Won-Lost Record

I've told you this story before, but it is an important one to repeat.

I visited a company. The Executive Team didn't quite understand how "dire" their situation was. They made a lot of excuses, and they perceived that their performance was reasonable (i.e. they were making "some" profit, so things weren't so bad). So I translated their sales/profit data into an NFL-style Won-Lost Record.

What was their Won-Lost Record?
  • 4-12 (i.e. 4 wins, 12 losses).
It was like somebody lit hair on fire ... all of a sudden there was a "war room" and people scrambled into action.

Why?

Because nobody wanted to be associated with a brand that posted a 4-12 record. Nobody wanted to be on a losing team.

It's important to find a communication style that causes people to take action. Sales declines and tepid profit are generally not enough to motivate folks to take action.

What is your Won-Lost Record?

Want to know?

Send me the following:
  • 2016 Company Net Sales.
  • 2017 Company Net Sales.
  • 2017 Company Earnings Before Taxes.
Send me the data, and I'll plug your results into my equation. We'll see if you are winning or losing.

Business Principle #14