People cannot effectively play in the game of business if they don't have relevant information on performance. the books are shared (appropriately) and used daily to run the business; (1) company performance, (2) department performance, (3) individual contribution, (4) compensation estimate
Given Shows 5 & 20, you will create a plan to teach the company's financials throughout the organization to ensure every person and role understands how it contributes to its success.
EPISODE 129: Summary
Last week we covered the 3 critical financial documents every member of a business must understand; (1) Balance Statement, (2) Income Statements or P/L, and (3) Cash Flow Statement or Sources & Uses of Cash. This is where the training must start. Once they can read and understand by identifying why the changes occurred month to month, you can move on to harder concepts. Next you need to convert Business Plans into KPI's or Key Performance Drivers. The place to start is to transform KPI's into Profit Drivers.
EPISODE 130: Basic Training - The Big 3
We covered the Financial Basics in Show 5. That show was focused on new business owners. Today we are taking those three statements and providing basic training for everybody else in the organization. People cannot contribute if they don't understand how the company performs over time and why what happened happened.
EPISODE 131: Profit Drivers and KPI's
KPI's are used to determine the operational efficiency of the business and are essential. However the place to start is with Profit Drivers - at the end of the day how does the company make money. There is no standard model, each business is different, however there are some constants listed in the topics section.
It is essential the owner, with help from the management team and/or their accountant, identify what drives profit and therefore what actions must take place to make it happen - the KPI's.
EPISODE 132: Business Goals & Objectives at the Front Line
We provided an overview of MBO (Management By Objectives) in Show 20. Today we are covering the mechanics of how to make it happen.
Next Show/Chapter 32: Line of Sight
How to apply today's show to your business:
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