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Letter from the Editor By Jerry Griffin Making the Numbers Work "Informing and Empowering Your Workforce" An idea whose time has come By Gavin Freytag Getting the Money "Managing Your Loan Officer" Advice from a successful lender By Richard Eckels E-Commerce: The Revolution "Changing Business Models in Mid-Stream" An issue you will face By Eric Anderson Exit Strategy "Finding the Best Buyer for Your Company" Leaving successfully By Bob Shortle Reflections "Are You Ready" Are you ready? By Jerry Griffin	Making the Numbers Work If you want your business to grow, educating your people is a top concern. Educating your employees to the meaning of profits is this author’s mission. One of Gavin Freytag’s customers said to us, "Profitworks gave us the courage---and the insight---to make the changes we all knew we needed to make." What better recommendation could there be? — Jerry Griffin Informing and Empowering Your Workforce By Gavin Freytag Executive Summary: Companies are discovering the importance of informing and educating their employees. Business success depends more and more on making sure your workforce is informed and enthused. Gone are the days when top management could figure, "the less employees know, the better off they are." The more employees know about their employer’s profitability and how they fit into the "Big Picture," the better off everyone is. Here’s an example of what we mean. After decades of closed-door management style and a climate of mistrust, the Tom Seely Furniture Company of Berkley Springs, WV, decided to take steps to foster a better company culture. Gat Caperton, the company’s new CEO, first introduced a profit-sharing plan, but he soon realized that the incentive plan alone would only provide a partial solution. He wanted to give his employees a lesson in business basics and help them understand the importance of profit for everyone. Caperton hired our firm, Profitworks, Ltd., to develop and deliver a customized workshop to Seely’s 150 workers. Over several sessions, the employees learned how their efforts affect the bottom line and how the bottom line affects the size of their profit sharing checks. Even before the end of the workshop, Caperton witnessed a dramatic shift in his employees’ attitude and behavior. In the final session, an employee told about a recent incident where one of the company power drills was missing from the warehouse. The employees determined when the drill turned up missing, confronted the night shift, pointed out how the company would be forced to replace the drill, and that the cost would come out of everyone’s profit sharing. The missing drill was returned the next morning. While this example proves that Caperton’s efforts to change the company’s culture are working, he also knows that involving his employees in the success of Seely Furniture is not an overnight endeavor but an ongoing process. Not surprisingly, open-book management is not for everybody. Example: a highly successful commercial printing firm we know in Columbus is wholly owned by a dynamic individual who feels that financial results are no one’s business but his own. To maintain confidentiality, he goes so far as to have his monthly financial statements prepared off-site by an independent CPA. Believe me, there is no arguing with his financial results! What’s your preference? Jerry Griffin
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