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    Increasing Your Operating Margin.ppt

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    Increasing Your Operating Margin.ppt

    Increasing Your Operating Margin,Lifelong Learning 2007 Greg Marsello,Operating Margin.,Operating Margin.,Operating Margin.,Ideal LERN Financial Format with Percentages,$_100%$_10-15%$_45-50%$_60%$_40%$_35%$_5%,Why Increase Operating Margin to 50%?,Surplus must growReserves must growInvestments must growStaff intellectual capital must growSecurity/independence must grow,50%Operating Margin LERN Financial Format,$_100%$_10-20%$_30-40%$_50%$_50%$_30-40%$_10-20%,No More Than 30%!,Actions to Take,Increase promotion costs.Be more targeted.Decrease production costs.Better negotiating.Increase prices.Focus resources on winners.Cut the dogs.Require accountability.Staff training plans.Look at the numbers.,Actions to Take,Let moneymakers make money.Telecommuting more important.Software must do more of the work.Web-based is best.Reduce meetings to 5%of time or less.Use virtual office.Dean/Director buffers staff from Central Administration.Focus on the job.Think in terms of business units.Centralize operations.,Actions to Take,Diversify delivery method mix.F2F courses,online,conferences,seminars,contract training,consulting.Dean/Director must be out of day-to-day and generating opportunities.50%.Do not copy the competition.Beat the competition.Plan.Everything needs to know what they are doing.,Pricing Is Critical,Know your production costsKnow your production percentageFor open enrollment,know your average participantsDo market pricing,Pricing Example,Step 1.Production Costs=$400Step 2.Production Percentage=40%Step 3.Required Income=$1,000($400/40%)NOTE:Contract sales skip next two steps.Step 4.Average Participants=10Step 5.Formula Price=$100Step 6.Do Market Pricing/Finalize PriceOptions:Reduce Costs.Offer As Is.Dont Offer.,Moving Forward,Major shift takes 3-5 years.Be realistic.Focus attention on pricing.Someone should be approving.Think diversification.Think investments.Use One-Year Market Plan.Also have a Three-Year Strategic/Vision Plan.Make 50%Operating Margin a Priority.,Thank You!marsellolern.org,

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