Principle #1:
You're Making More Money than You Know
Every company has significant internal profits that are being diverted awy from the bottom line. In fact, most companies only 20-25% of the profit they make to the bottom line.
Principle #2:
Manage on Net Profit
Use Net Profit for decision-making — gross margin rate is not related to actual profitability and will lead to losses.
Principle #3:
Financial Averages Mask Reality
Dig deep — financial averages mask what's really going on.
Principle #4:
Measure and Evaluate at the Quantum Level
Break down the business into logical chunks and measure profit at the the invoice line level for better evaluation.
Principle #5:
Understand and Manage Service Models
Design profitable service models that match each segment's Gross Profit budget to their transaction costs.
Principle #6:
Manage the Deltas
Driving profit improvements is the key to competitive dominance .
Principle #7:
Price Intelligently for Optimum Profits
Intelligent Pricing injects pricing discipline and captures money that's "left on the table".
Principle #8:
Align Goals & Incentives with Net Profit
Design incentive plans so you have the motivators to bring everone on board.
QPM Slide Deck
Click here for 8 QPM Principles Powerpoint slide deck.