People, Process, Product – The Three Ps of Profit
It’s wonderful what a long holiday weekend can do for the soul. Between mingling with family members, enjoying delicious food, catching some football, and maybe even indulging in a new found TV show you never know what you’ll come away with. For me, this past Thanksgiving led me to CNBC’s The Profit with Marcus Lemonis and for past couple weeks I’ve been enthralled in tales of struggling businesses who need Marcus’ expertise to get out of hot water. Each business is different with its own unique set of problems, and Marcus has to assess the likelihood of success before deciding to do business with them.
He relies on what he calls the Three Ps – people, process, and product, to evaluate and help make his decision. His argument is that successful companies have all the Three Ps and that struggling ones usually are lacking one, or even two of the Ps. In this case, most of the companies featured on the show are missing “the process.” So after binge watching more episodes than I should admit, the Three Ps started to stick with me.
To ensure a company is ready for lasting success you must have your Three Ps in order, read on to see if you do.
It’s been said that “you don’t build a business, your people build your business” and this holds true in each episode of The Profit. When employees are engaged, happy, and feel needed they will go the extra mile and work for the benefit of the business. On the other hand, when employees’ opinions of the business or business owners sour, they can be a huge detriment to your success. Realize your talent, award them with recognition and appreciation, and both parties will benefit.
Setting up processes is a common struggle for a lot of businesses. It takes organization, a clear vision, and communication to ensure the process is followed through while also accomplishing the goals it was designed for. Marcus is known for being very business savvy and much of that is attributed to his ability to set up efficient processes. In each episode we see how he identifies a problem and finds solutions, then he communicates the changes to the employees so that they continue to implement his change over time.
No company would have a shot at surviving without a product (or service) to offer. But in order to be competitive the product needs to have unique differentiator.
During the episode that features West End Coffee from Greenville, SC they identified two differentiators. The first being that they are a local company in northern South Carolina, shopping local and understanding where your purchases come from is a huge buying influencer for consumers today. And the second was the price. West End Coffee is sold at a significant discount compared to others in the coffee space. Not only can consumers enjoy coffee from a local roaster, but they don’t have to break the bank while doing so.
So next time you’re looking for a show to watch, consider checking out The Profit to see which of the Three Ps the company needs the most help with.
CFO Call to Action: Aligning Sales and Finance
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