We all want to transform a business from loss making to profit making. Well it is easier said than done. It is pretty much akin to an obese person to say he wants to be skinny.

Outside: principles in action

Many things need to happen for a business to be in profit:

1. Value: It must identify product(s) or service(s) that is in high demand now or that will be in high demand in the future. High demand products or services all one thing in common no matter what type they are, all add value to the end-user or solve a problem he has.
2. Production: It must be able to produce these products and services in desired quality on a consistent basis.
3. Scalability: The production of these products and services must be scalable upwards in case demands increases or downwards in case demands decreases.
4. Distribution: There must be proper distribution processes of these products or services.
5. Innovation: If the demand decreases of the products/services, their production and their distribution must be transformed through innovation. 

Inside: People at the forefront

In order to do meet all the above five criteria of profitability that reflects on the financial statements, many other things need to happen inside the organization. All these things are related to the force that drives organizations, that is, people. Here are 10 qualities of how an organization geared up for profitability looks like from inside in the case of Nepal:

1. Clear vision and strategy: The leader must “know” where to take the ship. He must not go east on Sunday, west on Monday, north on Tuesday and we guess you know what we mean.
2. Proper leadership: Old style of leading where employees were easily available, exchangeable and disposable is gone forever. Today the leader must treat employees like internal customers who buy his vision.
3. Right team members: There are two ways to get them. First one is good karma! It seems there is just no way how to explain how Bill Gates meets Steve Balmer, Steve Jobs meets Steve Wozniak, Larry Page meets Sergey Brin. But after that fateful meeting finding the right team members can be boiled down to one process - profiling.
4. Well-designed organization structure with the customized compensation systems: Best teams fail without proper job description. Not every employee is motivated by money and not all organization need for growth can be fueled by blanket compensation packages. You need high dosage of creativity.
5. Best working culture: Alas building one costs up to 20 to 30% of your gross profit: Parties, gifts, prizes, paid holidays, margin for errors, free lunch and unlimited tea/coffee. It seems best teams are the ‘high maintenance type’.
6. Adoption of correct SOP (Standards Operating Procedures): Lead, follow or get out!
7. Integration of technology: Please let excel phase and embrace google sheet: an example. Throw local servers and get on the cloud.
8. Continuous training/coaching/mentoring in groups and at individual level: Make champions. Would Manchester united win without training and showing up on game day only?
9. Staying near to the customer always even those far up: Step down from ivory towers and help your front line employees. You will learn a lot.
10. Data driven mindset: Would you drive without your car's dashboard functioning? Stop running a company like an obese person who weighs himself once a year. lf your fuel gauge shows red, then would you continue or stop for refueling ?

Conclusion

By adopting the above 10 qualities, you can get your organization to transform inside out.

Authors: Mohan Ojha & Manohar Man Shrestha