The Art of Profitability

About the Author

Adrian Slywotzky is a distinguished management consultant and a leading authority on profitability and business value creation. As Vice President and member of the Board of Directors of Mercer Management Consulting, Inc., Slywotzky has worked extensively with CEOs of major corporations on issues related to new business development and creating new areas of value growth. He holds degrees from Harvard College, Harvard Law School, and Harvard Business School, underscoring his deep academic foundation in business and law.

Slywotzky has authored and co-authored several best-selling books, including Profit Patterns: 30 Ways to Anticipate and Profit from Strategic Forces Reshaping Your Business and The Profit Zone: How Strategic Business Design Will Lead You to Tomorrow's Profits. His work consistently focuses on how businesses can anticipate changes and design strategies that lead to sustained profitability.

Main Idea

In The Art of Profitability, Adrian Slywotzky presents a novel approach to understanding and achieving profitability. Rather than offering dry, textbook-like prose, he employs a master-teacher and student dialogue to explore 23 different profit models. This engaging format not only makes the complex subject matter accessible but also emphasizes the multifaceted nature of profitability. Each chapter introduces a unique profit model, illustrating how diverse strategies can lead to financial success.

The book encourages readers to think deeply about profitability by focusing on one chapter per week, allowing for a Zen-like concentration on each concept. This methodical approach ensures that readers can fully grasp and apply the principles to their own business situations.

Table of Contents

1. The Student Meets the Teacher
2. Twenty-Three Flavors and Maybe More
3. Customer Solution Profit
4. Pyramid Profit
5. Multi-Component Profit
6. Switchboard Profit
7. Digital Profit
8. Time Profit
9. New Product Profit
10. Specialty Product Profit
11. Conclusion: The Art of Profitability

The Student Meets the Teacher

The journey begins with Steve Gardner, a young strategic planner at Delmore, who is eager to learn about profitability. At a cocktail party, he is referred to David Zhao, an expert in business structure, who agrees to teach Steve about profitability under specific conditions. These include weekly Saturday morning meetings, extensive reading, and a fee of $1,000 per lesson to be paid when Steve is able.

"I'm not asking for the money now. You can pay the fee when you're able to - if you ever are." - Adrian Slywotzky

Understanding the Teacher-Student Dynamic

The teacher-student dynamic is central to the book's structure. Zhao guides Steve through the lessons, using questions and assignments to deepen his understanding. This relationship mirrors the classic master-apprentice model, where the student learns through guided exploration and self-discovery.