When do you find out about profit problems:
Before or after they have hurt you?
Have you ever felt bothered by something or some things in your business, but, you cannot put your finger on them? Like you should be making more money more consistently?
Once upon a time, in the land of Phrygia, which was in modern-day Turkey, there was a king named Gordius who had tied a knot that no one could untie. This knot was so complex and intricate that it seemed impossible to unravel. Many people tried to untie the knot, but they failed miserably.
As the legend goes, an oracle prophesied that whoever could untie the Gordian knot would become the ruler of all of Asia. The prophecy had many brave souls attempting to untie the knot, hoping to claim the prize. However, it was so difficult that they all gave up in frustration.
Then, one day, a young and ambitious Alexander the Great arrived in Phrygia. He saw the knot and was eager to try his luck. But after many hours of trying, he realized that it was impossible to untie it.
Feeling frustrated and impatient, Alexander suddenly drew his sword and sliced the knot in half, untying it instantly!
A simple solution to a seemingly complex problem, seeing differently!
This unexpected and simple solution to an otherwise complicated problem amazed the people of Phrygia, They interpreted it as a sign that Alexander was truly destined to conquer all of Asia Minor, which he did.
The story of the Gordian knot is an example of what we now call nowadays disruptive innovation. Alexander, in his willingness to do what others thought was impossible, made the solution simple.
Today, the phrase “Gordian knot” is used to describe difficult difficulties that require an unconventional or innovative solution. It is a reminder that often, the most effective solution to a complex problem may require stepping back until you can see a simple solution, then taking bold action.
The reports we currently use in business are like the Gordian Knot. They are complicated, intricate, and get us chasing things that make little difference to profit. They hide when real issues arise, until too late to really solve them, before they hurt our wallets.
Many a good manager has been frustrated and confused by them. Many more have instituted corrections that, in the end, did not make much difference to the profits.
Rather than torturing the reports and yourself, with more clever spreadsheets within spreadsheets, imagine if there was a way, like Alexander, to cut to the chase, remove complexity, and see clearly what, when, and if you need to do it?
If so, why don't more people know about it, and use it? Most people are like those who tried to untie the knot before Alexander. They learn what they think will work on Google, or in school, or they see everyone else doing it, and think it must be the only way.
Like an old sweater, it is comfortable, but no longer does the best job at keeping you warm. What if using these reports to operate has been done so long because they have been around a long time? Not better, just older?
It takes courage, and frustration with things the way they are, to disrupt the existing state of affairs. Do things have to be complicated, or can you make them simple, like Alexander did with his sword? Cut through the noise? Disrupt the existing state of affairs?
Yes, and it is pretty easy to learn. The key is distilling out the information you don't need until you only have the information you do.
Reports that model how money is really made in your business, not how it looks on spreadsheets, or arranged in clever accounts to make your accountant's life easier. The same information arranged simply, showing new money earned, the money trapped within in inventory and capital investments, and the money that goes out. Some call it Throughput Accounting. Others call it Management Accounting.
The IDW Method ™ and Rapid Profit!
Whatever you call it, The IDW Method™ Rapid Earnings Workshop will not only show you how to do it, but how to do it with existing data you already have. It will not only show you how, it provides you with world-class mentors to help lead you through how to set them up and use them.
And, it provides you with a couple of amazingly useful, surprisingly simple tools, so you can “follow the money” easily, graphically, and uncover problems much sooner. The only picture worth looking at is the big picture, and visual reporting is easier and quicker to understand. These tools, the Throughput Earnings Report and the TIO dashboard, are like Alexander's sword, cutting through apparent complexity to make what you need to see simple!
So, are you going to conquer, or remain in the crowd?: Are you going to disrupt, or follow? Learn how to sharpen your sword rapidly and cut through the complexity to see your way to ever greater profit, guided by mentors, and have a good time doing it?