“What gets measured gets managed” goes the adage. The best run, most profitable companies have taken the time to determine what their most important measures of success are, and then manage according to those measures. Tracking the right numbers allows leaders to anticipate problems before they arise and provides more time to make informed, proactive decisions. They firefight less and experience less stress.
Many of the company leaders we talk to know that management metrics are key to their overall business strategy. Yet those same leaders shy away from analyzing anything but the most basic of indicators.
A typical small to medium-sized business has close to 50 different metrics it can pull from the accounting system alone! That information, coupled with data from sales, production, and scheduling systems can yield hundreds if not thousands of different metrics. The choices can be overwhelming. But they don’t need to be.
With just four tools, leaders can gain more insight into their business strategy and make better decisions.
- Break-even Analysis
- Cash Flow Forecasting
- Key Performance Indicators
Bellrock helps clients implement these tools and the associated systems. We also help managers learn about finance through our management training program. Contact us today to find out how we teach companies to manage by the numbers.