Too many companies try to increase profits purely by limiting operating costs. While it is clearly smart to cut costs where possible, some cuts result in nothing more than a short term gain. The challenge is to find innovative ways to increase the value of their brand, improve their employee morale and expand their social responsibility, all of which will ultimately drive up profits. Google, Zappos, Nike and others see the value of creative strategic initiates, and they are thriving because they have found their “secret sauce.”
Often companies miss the opportunity of finding their secret sauce because they don’t see the value in considering new and creative solutions. Bogged down by the daily demands of surviving, they feel they have neither time nor resources to pursue more innovative ways of doing business. But it’s well worth both.
Find your secret sauce by mixing three ingredients into your current business plan:
- Financial Capital. Reclaim your financial capital by implementing better spend management and cost containment strategies. Even if you think you’ve done a good job of eliminating wasteful corporate spending, there are likely places you haven’t thought to look for savings.
- Human Capital. Explore ways to invest in your most valuable asset: your human capital. Introducing a wellness program, or hire executive coaches to help transform your corporation into a thriving enterprise with happy employees.
- Social Capital. If you haven’t implemented a Corporate Social Responsibility (CSR) program, start one. Research local charities and non-profit organizations which need corporate partners, contribute excess inventory or other usable goods to organizations that will help distribute your donations to those in need, or start a day of service on which your employees help out in a local charity.
By reclaiming your precious capital and reinvesting it in your human and social capital, you have just found your recipe for the secret sauce that will allow your company to flourish!