Fwd: FW: [Ext] What is important; Saving Time or Saving Money?

[Rajesh Thomas]

If you look at large businesses, the only key metric they monitor for business growth is Top-line; that is Sales Revenue! While profit is the core reason why businesses exit; profit has direct co-relation to Revenues. More the Revenues, the more likely is growth in profit as well.

Having said the above, growth in profit (higher multiple than the revenue), can be achieved if the enterprises start saving money (or reducing costs). But it has been proven time and again that reducing costs eventually impacts the core aspects of enterprise eco system, right from employee morale to customer experience. This indirectly (in many cases directly), impacts revenues and eventually profits. So how does one break this chasm of reaching a model that continuously delivers higher revenue multiples and even higher profit multiples? 

Solution lies in ‘Smart Spending’! Smart spending coupled with enhanced revenue growth! Too heavy right?

Smart spending can be achieved through first spending on smart Automation. Automation that makes your execution/deliveries/production 10 times faster.By this spending (or investment), if the revenue growth is significantly higher, without increasing manpower or other fixed costs, then your Profits will grow exponentially on a base of faster revenue and lower fixed cost!

I know this may not be ‘new’ gyan for many business leaders reading this; But had this sudden urge to write about this (I remembered one external guest lecturer talking on this topic when I was a MBA Finance student at Canadore College, Canada!)…