Did You Ever Wonder Why Companies Don’t Have a VP of Profitability?

Posted By Tim Lewko | Feb 25, 2015 4:27:00 PM
Did You Ever Wonder Why Companies Don’t Have a VP of Profitability?

We know that profit makes the world go around because it provides the medium to reinvest business for future growth.

So why don’t companies have a VP of Profitability?
 

We don’t have VPs of Profitability because we actually don’t manage Profit directly. It’s the output of the activities that produce revenue (sales) less the activities that it costs to make and support the delivery and service of this product to the customer.
 

This answer may be obvious to you and those in your company but we see a profound and practical opportunity for executives and managers who have not yet taught everyone that profit (P) is an output of Revenue (R) less Expenses (E).

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