competition now has a lot of information that can be used against you in the marketplace. The salary multiple does not discriminate between a hire leaving that is a superstar or a hire that is leaving because they were terminated due to poor performance. The cost is still the same. The leaving of the superstar could have been avoided by better performance management systems and skills. The termination of a bad hire could have been avoided by validated hiring processes. The bottom line is that both could have been avoided by better practices.

The key to the continued health of your organization lies i

CPR is defined as an emergency procedure that is performed when breathing or heartbeat has stopped. When problems occur in the functions that are the lifeblood of their organizations, emergency procedures have to be performed.

Cash generation, Productivity and Retention™ are as vital to the health of organizations as breathing and heartbeat is to the human body. Maximizing the function of each of these components will result in robust organizational health.

In subsequent issues of this newsletter, we will explore ways to maximize the performance of each of these components in your organization. First, let’s look at how each of these components need to work together to produce maximum health of your organization.

Cash generation

Increased cash generation results when the organization identifies, gets in front of and closes the sale with their perfect customer. In major corporations, marketing and sales departments are hired and staffed with individuals who are experts in maximizing these functions. In smaller companies, many times what is said is that “we are too small to have marketing and sales functions!” This statement is far from the truth. The secret is that every organization needs to maximize their marketing and sales efforts if cash is going to be generated. The truth of the matter is that no matter how good your product or service, if the perfect client does not know about it and/or it is difficult to obtain, sales will not be realized and cash generation will suffer.

Productivity

Whether an organization is staffed by thousands or by 10 people, productivity needs to be maximized for the organization to exceed its goals. People need to be engaged in the attainment of the strategic objectives, they need to know what is expected of them and they need to be given regular feedback on their performance. Maximum productivity is a function of both process and leadership skills intersecting and resulting in maximum performance.

Retention

Let’s take a scenario to illustrate the importance of retention. One of your star performers becomes disillusioned and dissatisfied and leaves to go to a competitor. The cost to fill this position is approximately 2 x salary. A simple calculation will show you what turnover cost you this year. This is not to mention that another company now has the benefit of all of the training that you have already paid for. In addition, your competition now has a lot of information that can be used against you in the marketplace. The salary multiple does not discriminate between a hire leaving that is a superstar or a hire that is leaving because they were terminated due to poor performance. The cost is still the same. The leaving of the superstar could have been avoided by better performance management systems and skills. The termination of a bad hire could have been avoided by validated hiring processes. The bottom line is that both could have been avoided by better practices.

The key to the continued health of your organization lies i

First, let’s look at how each of these components need to work together to produce maximum health of your organization.

Cash generation

Increased cash generation results when the organization identifies, gets in front of and closes the sale with their perfect customer. In major corporations, marketing and sales departments are hired and staffed with individuals who are experts in maximizing these functions. In smaller companies, many times what is said is that “we are too small to have marketing and sales functions!” This statement is far from the truth. The secret is that every organization needs to maximize their marketing and sales efforts if cash is going to be generated. The truth of the matter is that no matter how good your product or service, if the perfect client does not know about it and/or it is difficult to obtain, sales will not be realized and cash generation will suffer.

Productivity

Whether an organization is staffed by thousands or by 10 people, productivity needs to be maximized for the organization to exceed its goals. People need to be engaged in the attainment of the strategic objectives, they need to know what is expected of them and they need to be given regular feedback on their performance. Maximum productivity is a function of both process and leadership skills intersecting and resulting in maximum performance.

Retention

Let’s take a scenario to illustrate the importance of retention. One of your star performers becomes disillusioned and dissatisfied and leaves to go to a competitor. The cost to fill this position is approximately 2 x salary. A simple calculation will show you what turnover cost you this year. This is not to mention that another company now has the benefit of all of the training that you have already paid for. In addition, your competition now has a lot of information that can be used against you in the marketplace. The salary multiple does not discriminate between a hire leaving that is a superstar or a hire that is leaving because they were terminated due to poor performance. The cost is still the same. The leaving of the superstar could have been avoided by better performance management systems and skills. The termination of a bad hire could have been avoided by validated hiring processes. The bottom line is that both could have been avoided by better practices.

The key to the continued health of your organization lies i

eeds to maximize their marketing and sales efforts if cash is going to be generated. The truth of the matter is that no matter how good your product or service, if the perfect client does not know about it and/or it is difficult to obtain, sales will not be realized and cash generation will suffer.

Productivity

Whether an organization is staffed by thousands or by 10 people, productivity needs to be maximized for the organization to exceed its goals. People need to be engaged in the attainment of the strategic objectives, they need to know what is expected of them and they need to be given regular feedback on their performance. Maximum productivity is a function of both process and leadership skills intersecting and resulting in maximum performance.

Retention

Let’s take a scenario to illustrate the importance of retention. One of your star performers becomes disillusioned and dissatisfied and leaves to go to a competitor. The cost to fill this position is approximately 2 x salary. A simple calculation will show you what turnover cost you this year. This is not to mention that another company now has the benefit of all of the training that you have already paid for. In addition, your competition now has a lot of information that can be used against you in the marketplace. The salary multiple does not discriminate between a hire leaving that is a superstar or a hire that is leaving because they were terminated due to poor performance. The cost is still the same. The leaving of the superstar could have been avoided by better performance management systems and skills. The termination of a bad hire could have been avoided by validated hiring processes. The bottom line is that both could have been avoided by better practices.

The key to the continued health of your organization lies i

lar feedback on their performance. Maximum productivity is a function of both process and leadership skills intersecting and resulting in maximum performance.

Retention

Let’s take a scenario to illustrate the importance of retention. One of your star performers becomes disillusioned and dissatisfied and leaves to go to a competitor. The cost to fill this position is approximately 2 x salary. A simple calculation will show you what turnover cost you this year. This is not to mention that another company now has the benefit of all of the training that you have already paid for. In addition, your competition now has a lot of information that can be used against you in the marketplace. The salary multiple does not discriminate between a hire leaving that is a superstar or a hire that is leaving because they were terminated due to poor performance. The cost is still the same. The leaving of the superstar could have been avoided by better performance management systems and skills. The termination of a bad hire could have been avoided by validated hiring processes. The bottom line is that both could have been avoided by better practices.

The key to the continued health of your organization lies i

competition now has a lot of information that can be used against you in the marketplace. The salary multiple does not discriminate between a hire leaving that is a superstar or a hire that is leaving because they were terminated due to poor performance. The cost is still the same. The leaving of the superstar could have been avoided by better performance management systems and skills. The termination of a bad hire could have been avoided by validated hiring processes. The bottom line is that both could have been avoided by better practices.

The key to the continued health of your organization lies in:
• Increasing cash generation.
• Increasing the productivity of your staff.
• Increasing the retention of your superstars.
Next Month: How to Increase Cash Generation!

Organizational CPR increases Cash generation, Productvity and Retention™!