Maximizing your P&L Experience

Experience managing P&L has become an increasingly desired skill . The

ability to successfully decrease costs while increasing revenues is obviously a
talent any company would find attractive in a candidate under any
conditions, but one that becomes even more crucial in prolonged periods of
recession or instability. If you're a manager who has little experience with
P&L management but would like more, or one who would like to better
articulate the P&L management skills you do have, then consider these key
attributes of executives who maximize control of P&L management:
1. The buck stops here mentality.
Senior-level managers with P&L responsibility must have complete ownership
of the business units successes and failures. This includes a strong
command of every program and item contributing to profits or expenses,
taking final responsibility for any profits or losses achieved. For example,
when the CEO of Delta, Gerard Grinstein, gave up stock options offered
during Deltas period of Bankruptcy he displayed personal responsibility for
the entire organizations performance.
2. Confidence and determination that he or she can influence
events.
P&L responsibility goes far beyond reporting current finances or being
responsible for profits or loss. Executives must take steps to improve P&L
statements, and in order for a senior executive to be successful, they must
be extremely confident in their ability to work with a variety of departments
and teams to identify savings and opportunities. Those who see their
organization as tied to market or external forces should not assume P&L
responsibility.
3. Team leadership skills taking the team with you, providing
inspiration.
P&L responsibility goes hand in hand with leadership - executives must
communicate the actualities of the P&L statement and ensure every

employee is invested in positively influencing the financial situation of the

organization.
4. Willingness to listen to others and encouragement of creative
ideas, regardless of source.
Managers must discover new ways of generating income, especially as
traditional income streams are affected by economic downturns or
technological advances. In order to implement new income-generating
streams, he or she must source new ideas from all levels in the organization
and be open to external advisors or consultants. An innovative outlook is
essential to maintain a healthy P&L statement.
5. Humility to admit mistakes, sharing of achievements.
Senior-level Managers with P&L responsibility are often required to
communicate P&L statements to owners, shareholders, and the entire
organization, justifying expenditures and explaining profit levels. Mistakes
should be openly discussed, followed by suggested next steps and potential
solutions. Hiding any information or problems leads to isolation from key
thought leaders, and ultimately distrust (and possible dismissal). On the
other hand, achievements need to be clearly communicated, attributing
success to those involved.
By Blue Steps .com