This content was created by Michael Erath. This content was uploaded by Michael Erath. This is a YouTube video titled "A Simple Solution to Significantly Increase Your Profit" featuring a conversation with Michael Erath, discussing his journey in understanding business metrics and the importance of defining a most critical outcome for roles within an organization to drive economic success.
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Has the data and the numbers always been a big part of how you think and how you operate?
Not always, no. So I grew up in this family manufacturing business, right. So I kind of learned it from the inside out. But when we were living in Virginia, I was a member of YPO, this Southern 7 chapter there. And through my forum group, that's when we got into top grading. We started implementing some things from Rockefeller habits. Really did some deep studies on a lot of Jim Collins work. And I became a really big fan of understanding profit per x and and spent a lot of time going deep on that. And a lot of the work that I had done with my own leadership teams on profit per is what led to understanding this idea of most critical outcome and how it ties back to ultimately what drives the economic engine of the business. And so if every role within an organization can have a single most critical outcome, that is how they in their role contribute to driving the economic engine of the business that creates a significantly more financially stable and successful business. So that's it. More came about organically over time and through some outside influences and peer groups that I was in.