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Elizbeth Rainie says...

If you are looking for a way to increase profits in your organization, I strongly recommend that you start by first reading Profit Building - Cutting Costs Without Cutting People. Mr. Ludy takes you step by step though the process of building an on-going profit build team for your organization. We have used it as a blueprint for our company and it has really turned our employees. The book moves fast and I found it to be an easy read.

Posted on November 20, 2010

Alfonso Gonzalis says...

As one CEO said to me recently, "No one who has a conscience ever wants to lay anyone off."Yet the headlines are filled with announcements that companies are making massive cuts in jobs and employees.Recently, these cuts are even coming in the fastest growing technology industries.If people don't like to fire anyone and people don't like to be fired, why is this happening?

Mr. Ludy argues that faced with missing budgets, the orders come down to spend less.Most people do know how to fire someone, so that option gets plenty of attention.Most people do not know many other ways to cut costs or boost profits in the short term, so the alternatives get little attention.

Our firm did a study more than a decade ago that has been quoted in dozens of books and magazine articles.We found that the stocks of companies which did layoffs usually underperformed the stocks of companies that did not.By the end of four years, the differences were enormous in favor of those who did not do layoffs.

Many people believe that this is because people do layoffs poorly, and many people do.But it also because the effort that goes into the layoffs could be better deployed in activities that increase profits.Usually, the bulk of those who go are the most employable people.They end up working for the competition, or having to be hired back as expensive consultants.How does either alternative help, while you are paying severance benefits as an additional cost?

Mr. Ludy points out, based on his extensive experience, that most executives, managers, and supervisors know little about profit improving.

Much of the recent training in companies has been on how to reduce errors, and that may help cut costs in main processes.That learning is often of little help in secondary processes and in areas where the processes need to be totally replaced, revised, or outsourced.Xerox and Motorola are both famed for their quality processes, and both companies are struggling now to make a profit.

Mr. Ludy has developed a process described in the book that helps to get people focusing on the best opportunities, and following through to implement the opportunites that they select.He also provides lists of items which many companies ignore, to help get the process started.

Although I have not seen this process working in practice, it is similar enough to elements of successful processes I have seen that is has credibility to me.

If you decide to pursue this process, I suggest that you can improve upon it.First, rather than just having one small team working on this, you should try to get as many people working in small teams as possible.The most successful profit-improvement program I ever saw involved over 14,000 people in suggesting ideas.Second, be sure to compare the performance you are achieving in one part of the company with what you are achieving in another part of the company in the same activity.Most large companies get their best ideas from benchmarking to their own best practices.Third, be sure to create an e-intelligence capability to get more information to everyone about how the company is performing.E-Business Intelligence is a book that can help you understand this point better.

The three strengths of Mr. Ludy's process to me are:

1.The emphasis on finding ways to improve profits, without hurting people.

2.Training people about how to improve profits.

3.Eliciting questions to locate opportunities.

In regard to the second point, you may find it helpful to read Dr. Ram Charan's new book as well, What the CEO Wants You to Know.That book focuses on simple business concepts and metaphors to make everyone better able to relate to the issues of the enterprise.

One of the major weaknesses of companies is that leaders are often asked to pursue tasks for which they do not have relevant information, experience, or training.Where else does your company have this issue?In my experience, two areas stand out.

(1)Finding better solutions to repetitive problems.

(2)Choosing directions that will lead to better results, regardless of business conditions.

May you find more intelligent, and more humane, ways to profit!

Posted on November 21, 2010

Markita Thornton says...

As a corporate management communications and marketing consultant, my firm is often asked to help managers discuss cost cutting campaigns with their staff.Perry Ludy's book is the perfect primer to serve as the basis for such projects.While keeping the bottom line front and foremost, the premise of the book is employee involvement.Using the techniques in Profit Building, good management communications literally fall into place.I am ordering copies for two current client projects and will be looking for ways to weave it in to additional work.

Posted on November 21, 2010

Lawanna Mccure says...

The truth is that the title of the book is attractive, especially in these times of crisis. But I think it focuses too much on the process of generating ideas to reduce costs by using the technique of brainstorming. Basically the whole model is that people generate ideas for reducing costs and the author presents some, but do not present a real and profound solution to the problem. I think the author is naive to think that only by bringing people together, training them and making them to generate ideas, we will achieve impressive results and high added value to the company.

The model needs to be more structured and not so much process oriented.

Believe me. If you use this model, may be people will be happy to be part of a team, participate in this meetings (working lunchs would be better) but no great impact will be created in making costs go down.

Posted on November 23, 2010

Ira Oskins says...

It is axiomic that the role of the firm is to maximise profit; some would say to maximise shareholder value. Profit can be increased by selling goods and services at a premium price that the customer is prepared to pay. However, in a highly competitive environment, prices can be depressed and the company may have to focus on cutting costs whilst maintaining an acceptable level of service and quality.



With the various economic shocks that the world is subjected, one typical and favourite target for cost cutting is reducing the workforce. This short-sighted approach to cost cutting not only causes a lot of human suffering but seldom achieves the intended objective of reducing costs in the long-run. Perry Judy proposes a more progressive approach that focuses on profit improvement. The Profit-Building Process that the author proposes appears to be an effective and workable method for building profit without employing the short-sighted and often self-defeating cost-cutting through cutting people.



I work in the airline industry where people cutting is a favourite strategy employed during lean times. Very often, following the drastic reduction in manning levels, service levels are reduced to such an extent that customers are turned away, further worsening the plight of the airlines concerned. The step-by-step approach of building on-going profit through motivated teams appears to be an excellent strategy for companies to employ when cost-cutting is required.



The book is required reading for all managers tasked with the responsibility to cut costs and build profits in any department.

Posted on November 23, 2010

Garry Shults says...

Perry Ludy's Profit Building clearly explains and documents that corporate downsizing and layoffs is both a short-sighted and an dysfunctional approach to increasing profits. What companies require are long-term solutions capitalizing on their principle resource of knowledgeable and competent employees. Highly recommended, essential reading for corporate managers, CEOs, and corporate board members, Profit Building sets forth a five step method (Picking Your Team; Preparing Your Team; Brainstorming All The Questions; Taking Action And Documenting Results; Reviewing And Following Up) ofcost reduction and profit improvement through the utilization of the "Profit Building Team". The informative, "reader friendly" text is enhanced with more than a hundred specific, tested ideas for cost reduction generated by a variety of teams using Ludy's approach. If you have a corporate responsibility for the success of a business enterprise, give Perry Ludy's Profit Building a very careful reading.

Posted on November 24, 2010

Eboni Bottella says...

This book is easy to read. The message of how to achieve continuous profit improvement through cost reduction strategies is simple, yet powerful. The examples noted by the author help to crystallize how each step in the process can be successfully implemented while validating your record as an effective leader and innovative thinker. I believe there are many business leaders today who would benefit from reading this book.

Ludy offers insight to some of the obstacles business leaders face today in developing effective strategic plans to help sustain long-term profitability. He presents the strategies with a humanistic view, recognizing that people come from different backgrounds and have unique thoughts about how to achieve the same goals. The book shows how everyone can make a valuable contribution to a company's bottom line.

Posted on November 24, 2010

Hedwig Decker says...

Often, I review business books by U.S. authors in an effort to find a way to help me with different aspects of my business in Mexico. Interesting titles and concepts at first peak my interest, but then leave me disappointed because of their limited adaptability in the Hispanic/Latino culture. Mr. Ludy's book, Profit Building is the exception.

The majority of Mr. Ludy's profit building process can be implemented immediately for improved results in team building, creative problem solving, cost reduction and profitability improvement - whether your business is in Mexico City or New York City.

Profit Building is an important book because it shows how a simple process can be enormously effective in any company in any part of the world. I strongly recommend it for any executive who seeks innovative ways to improve profits and successfully compete in business today.

Posted on November 26, 2010

Waldo Baerg says...

Perry Ludy has written a dramatic wake-up call for any manager responsible for bottom line results. In recent years we have learned how to improve most business processes significantly using work redesign, teams, quality and other tools. But few managers apply these proven approaches to profit building as a standalone process.

From his own extensive experience managing both staff groups and a variety of line organizations, Ludy provides practical guidance for involving employees in focused cost reduction and profit building initiatives. He points us toward new stands of excellence for managing in this twenty-first century.

Posted on November 27, 2010

Cleopatra Mcgorry says...

Those of us in Human Resources know how important it is to be able to contribute to the business side of the organization. Profit Building makes that possible. The book is loaded with great ideas for reducing costs within specific HR areas, including cost savings in worker's comp, labor and benefits administration.

The book's subtitle, "Cutting Costs Without Cutting People", instantly got my attention because, as an HR manager, all too often I had to be the bearer of bad news - simply because projections were not met. Profit Building sheds a whole new light on how HR professionals can positively impact the business. It's a model for action planning that we can confidently shepherd through the organization.

Posted on November 29, 2010