Rapid Profit Improvement (Series Post no. 5)
In our recent dealings with Business Owners and Managers it has become clear that many have been facing challenges when trying to identify the particular areas where additional business profit may be lurking, and that, as previously pointed out, is precisely where a new perspective is needed, because a fresh pair of eyes – like ours – can often rapidly uncover previously hard-to-see profit levers.
Case Study No. 5 – Identifying Savings is in the Detail and Analysis
The Docklands Light Railway (London) asked if we could take a look at their wage structure as they thought it was a bit on the high side.
So, we ran our Rapid Profit Radar Process, which included an audit of the payroll.
For those who don’t know London or its history, at the time our expertise was sought, there were three distinct rail networks operating throughout the English capital; namely, London Transport, British Rail, and the Docklands Light Railway, which was separated from London Transport to help develop both the London Docklands and East London areas.
Our Audit revealed several areas of opportunity, one being that there were 5 people on the payroll who no longer even worked at the Railway! Three of those former employees had transferred to London Transport when the Docklands Light Railway was separated from London transport 12-months previously. London Transport refunded the wages.
Of the remaining two employees, one had been retired for 18 months and the second had left to pursue another opportunity 6 months previously. Both had notified the Docklands Light Railway in writing on multiple occasions – but to no effect.
As a result of our audit, the net savings to the Docklands Light Railway was – in terms of New Zealand dollars – the equivalent of approximately $550k p.a. plus a refund of $350k from London Transport.
For more information on Rapid Profit Opportunities simply email us at profit@intotheblue.co.nz.
We always run a Zero-Risk policy with our customers… No Profit Improvement – No Fees.
For more information on creating or improving a business model please call John on (021) 625-871, and further more information please visit Into the Blue.
