“Profit Building” came out late last year. The subtitle tells you why it’s worth your attention. Even though assns. aren’t organized for profit, there isn’t one that doesn’t care about the bottom line. Ludy maintains that you can cut costs substantially without firing staff. He demonstrates an ongoing approach you can easily use.

Getting rid of people also gets rid of the capacity to contain costs in the future and the flexibility to respond to rapid changes in the market. Of course, there have been bloated payrolls, but once you’ve made these cuts, getting rid of staff becomes riskier.

Ludy offers his own method to create a sustained focus. He feels most organizations don’t pay enough attention to building profit. Paying attention to the financials is a starting point. Ludy then develops 5 steps; choose and develop the right team, prepare the organization for change, use a structured brainstorming process, take action and follow up.

One of the book’s novel approaches deals with brainstorming. Most brainstorming sessions use lots of flip charts and simple declarative phrases. Ludy focuses on asking questions instead of proposing actions. This is a technique you could use in many other places.

His approach is useful, and you can begin implementing at once for sustained financial well being. To jump-start the process Ludy offers 88 questions to stimulate brainstorming. In later chapters he offers 50 action steps to increase revenue and reduce personnel costs, then adds 60 further cost-cutting steps.

Ludy also touts incentives and rewards as useful to keep teams focused.

Not every suggestion will apply to assns. Some you may have already implemented. Some may conflict with other efforts already underway. But the book is worth looking at to ensure you’re saving costs throughout the assn.

Ludy recommends a very systematic look at costs. Over time, organizations can get lax. Start with payroll. How recently have you audited compensation practices to ensure policies - particularly on raises and starting salaries - are uniformly enforces? He also offers detailed suggestions on getting the most from your professional service providers. When did you last examine telephone, travel and utility costs?

The strength of the book is its approach. The suggestions will prompt your thinking, but get your staff involved. They are the key.

On balance, the book will start you thinking about costs. Thumb through it when you’re in the bookstore. You should find one of 2 ideas to cover the purchase cost. The investment in the whole book can bring an enormous return.

Details: 703/281-2588 or jkulick@gte.net