Though strains of the Olivia Newton-John hit from the early 80s may come to mind, I’m actually talking about getting your bottom line in shape, not your bottom. 
Last week, analysts lauded semi-conductor testing and packaging company Amkor Technology’s fourth-quarter margin improvements which stem from a commitment to fiscal discipline that is bringing operating expenses down. They’re also saying no to low-margin business. Wall Street rewarded the company with a 19% increase in share price right after the earnings announcement. As of this blog posting, the stock was still on the way up.
SmartMoney magazine reported that “the company lacked discipline in the past but it has demonstrated over the past two quarters that it is serious about improving profitability going forward.”
Managing costs and improving margins is not difficult IF you make it a part of everyone’s job, not just the CFO’s. Companies tend to start watching the outflow only when the inflow isn’t so good, but just as you’d never be able to improve your fitness without deliberate effort and possibly help from others, planning for profitability will give you a much greater chance for success than simply hoping for it.
