Business Process Improvement
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FOR IMMEDIATE RELEASE
POOLE RESOURCES ANNOUNCES AN ALTERNATIVE TO
SUPPLY-CHAIN THINKING & COST-CUTTING
New RPM Approach Focuses on Top-Line Initiatives That Drive Market Share
RIDGEFIELD, Conn., - Poole Resources, Inc., a firm that helps companies grow the top-line through a focus on the demand-chain, recently announced a new business formula, called RPM SM . The approach is designed to drive revenues, an issue that has become particularly critical to business health in the current economic downturn. RPM SM, which stands for the equation ‘Revenue focus x Processes = Market share’, combines top-line thinking with implementation of specific efforts directed at building revenue momentum. Since top-line growth rests heavily on the overall quality of customers’ experience, RPM helps clients link their processes (technology, sales, service, operating systems, strategic planning and learning) to generate increased market share.
The RPM SM approach is in direct contrast to the cost cutting tactic many corporations are quick to utilize as part of short-term shareholder value strategies. RPM SM helps companies identify or re-identify major long-term objectives and then make sure that all tactics and strategies support those objectives.
"Many CEO's are trying to hang on to their vision for the company," said Poole Resources president and CEO Barbara Poole. "But as the vision cascades down through the ranks, short term tactics, quick-fixes and a general task orientation are pushing results farther and farther from where they want to go. When short term tactics, like cutting head count, are used in conjunction with strategies intended to build shareholder value, the unintentional by-product is often eroded revenues and equity." A recent research study by Mercer Management found that two-thirds of 120 companies that focused only on cost cutting during the last US recession failed to achieve profitable growth over the next five boom years. This was due to missed opportunity to improve their relative competitive position, the study concluded. The RPM SM formula helps companies maximize the effectiveness of their people and processes, decreasing the need for cuts while positioning clients to take advantage of the chance to increase market share – an opportunity that often emerges in a downturn.
According to Poole Resources, a company focused on improving the bottom line through cost cutting is by definition limited to cutting 100% of its costs, although realistically, in terms of keeping the business functioning, savings rarely exceed twenty percent. When a company focuses on building the top-line, there are no such limits. But success depends on actually executing nuts-and-bolts plans to improve the subjective pieces of the business, like customer perception and quality of experience. This involves linking vision to strategy to operations and can sometimes require changing the very culture of the business – a formidable but achievable goal for companies with the will to thrive in the long term.
Companies often shy away from dealing with these so-called ‘softer issues’ of the business, perceiving such pursuits as less concrete from the standpoint of capturing and reporting results. RPM SM initiatives counter this thinking by building in benchmarking and other standards by which to measure progress. In addition, Poole Resources develops and delivers RPM SM solutions to help companies more successfully link top-line strategy to the way they actually do business. This area of implementation is where management consulting has fallen down, according to Poole.
“When we analyzed field processes for a client company that
thought it was highly customer focused,” said Poole, “we found
zero mentions of the word ‘customer’ in any of the procedure
manuals. This is a good example of how day-to-day processes can
actually move companies far from their original business models.
Using the RPM SM formula, we identify and analyze such situations,
then design and execute course corrections for returning to or
updating the company's objectives.”
When top management at UK-owned Allied Domecq Retailing USA decided to shift its business culture from manufacturer to world-class retailer – including multi-branding of its Dunkin' Donuts, Baskin Robbins and Togo's lines -- Poole Resources analyzed its Retail Brand Operating Systems and developed processes to create effective links between the new corporate business model and franchisees' need to implement related programs in their stores. These processes included development of new competencies and learning for both sides of the business.
The RPM SM approach started with the primary business strategy and helped create smooth paths directly to the consumer – the key to top-line growth -- through all levels of management.
About Poole Resources
Poole Resources was founded in 1992, and has worked with leading corporations, including Compaq Financial Services, The Walt Disney Company, and May Department Stores. The company provides its services to clients in the retail, consumer products manufacturing, hospitality, franchising, financial services, telecommunications, biotech/pharmaceutical, call center, healthcare and information technology industries. Client companies are publicly and privately held and range in size from the middle market to the Fortune 100.
Poole Resources is located at 54 Danbury Road Suite 306 in Ridgefield, Connecticut and can be reached by phone at 203-894-8405, or send e-mail to firstname.lastname@example.org.