Some examples of our Actions for Profits™ include:

American Management implements turnkey organizational programs:

  • We hire, train and initially administer a Sales Program
  • We develop Marketing and Sales Plans, hire and train personnel for sales, marketing and telemarketing positions
  • We supervise installation of manufacturing control and MIS systems
  • We implement manpower planning and utilization systems

American Management implements budgeting and operational controls:

  • We work directly with and/or supervise key managers to implement new budgets
  • We implement inventory control programs to increase inventory turns
  • We implement ‘just-in-time’ purchasing programs
  • We implement job costing analysis and quality control programs

American Management manages cash:

  • We make payment decisions with owner’s knowledge and approval
  • We prepare day-to-day, week-to-week receipt and disbursement plans
  • We implement payment moratoriums with vendors, when necessary
  • We secure financing and better financing terms

American Management implements "pay for performance" programs:

  • We establish standards of performance by job position with profit-oriented goals
  • We develop incentive compensation plans where incentives are paid on increased profits
  • We implement controls to ensure that employees are accountable, both operationally and financially for the profitability of the company

American Management hires, trains and fires personnel with owner approval:

  • We work with owners, and personnel at all levels to coach and promote changes across the organization
  • We hire and place personnel at all levels as necessary
  • We train and initially direct personnel at all levels
  • We fire non-productive personnel from staff positions at all levels, including Vice President, General Manager, Controller and Sales Manager

American Management closes and/or restructures losing operations, or entire divisions

  • We streamline operations, eliminating duplication or redundant activity
  • We restructure operations to ensure full utilization of workforce, systems and inventory
  • We close unprofitable divisions

American Management implements profits:

  • We cajole, beg, push and demand change from owners
  • We do whatever it takes to get real
  • We implement Predetermined Profit™

Implementing our three proprietary financial management tools, American Management begins the process of ensuring that business owners will enjoy increased profits.

  • Predetermined Profit
  • Penetrated Profit
  • Closed Loop Management

Predetermined Profit
Predetermined Profit™ establishes PROFIT as the primary result of the business plan. It is the opposite of residual profit - or making do with whatever is leftover after paying fixed and variable expenses.

With Predetermined Profit™, profit is "predetermined" by controlling variable expenses relative to revenue, and holding employees accountable, both operationally and financially (through Pay-for-Performance plans), to measurable standards of performance that support the business plan.

Penetrated Profit
Once Predetermined Profit™ is established, additional profit opportunities can be achieved. These additional profits, known as Penetrated Profit™, are a second tier profit gain and are realized when:

  1. employees, who are financially motivated, identify new opportunities to reduce variable expenses,
  2. aggressive discounting or new promotions, funded by savings from reduced variable expenses, can bring in new business and new revenues
  3. the company makes capital investment decisions, based on return on investment, that can be planned and measured, and employees can be held accountable for the profit improvements generated by the investment.

The key to achieving Penetrated Profit™ is to motivate employees to work within the philosophy of measurement, accountability and tight control of variable expenses, AND THEN provide employees with the opportunity for financial reward. This philosophy is the basis of Closed Loop Management.

Closed Loop Management™ Process
Closed Loop Management™ (click here to download a free Adobe Acrobat Reader) Process is the method that "interlocks" all aspects of the business through measurement and accountability to ensure that profit leaks are identified and remedied, and maximum profit and cash are realized. Our Closed Loop Management™ System focuses you and your employees to maximize operational, organizational and financial efficiency, and implement controls, measurement tools and reporting. A fully committed Closed Loop Management™ System guarantees profits, positive cash flow, retention and growth for employees and incentive compensation programs designed to achieve Penetrated Profits™.

Contact Us at info@amserv.com