The Fiscal Fitness Challenge
Focus on the core
From a local fitness club: “Boost your fitness level and get more out of life. Develop strong core muscles to help you react faster and stronger, distribute stress, absorb shock more effectively and give you the foundation needed to do more. We’ll help you get more results in less time - we offer world-class fitness equipment, guidance and inspiration, and expert fitness trainers who will develop a fitness program just for you.”
These same fundamentals apply to an organization’s performance and well-being. At the core of any business is the mandate to create value for its stakeholders. The corporate equivalent of a physical fitness regimen is developing the capabilities that define a company's distinction (building muscle) and continually improving the efficiency and effectiveness of operations (getting lean).
Anyone who has lost weight and kept it off acknowledges that the secret to fitness is never return to old habits and instead commit to continuous improvement. Fiscally fit companies commit to a lean mind-set, always honing their capabilities and cost structures, and maintain a diligent focus on strengthening their core.
Get me my finger on the pulse
Most of us know the key things it takes to run a successful organization: a clear vision and plan, bringing real value to the marketplace, being attentive to the customer, getting on the bus the right talent in the right seats, and do it all flawlessly. While these may be common sense, executing them with discipline and consistency to be profitable and build value is often the challenge.
Fundamental to operating a successful, high performing business is getting in the hands of the key decision makers the information they need to focus on profitability. Far too often internal reporting only provides indicators of past performance with little insight of what lies around the next corner.
The solution lies in unlocking the power of effective internal financial reporting and truly insightful financial intelligence.
Show me what I really need to know
A scoreboard in a hockey game, or any sport for that matter, provides you with a snapshot of what’s going on in that game right now. It’s designed so that in a glance you can get a sense of the game and know all the critical things about how your team is performing. Likewise, your internal financial reporting should do the same.
Today's technology has advanced to the stage to present financial information graphically, to be much more understandable, to be easily and securely accessed from anywhere, to be continually updated so as to be current, and to be customized so as to be relevant to your business requirements. And it can be done very affordably for all sizes of businesses. Dashboards transform complex financial and operational information into visually intuitive, at-a-glance views.
You shouldn't have to be a financial expert to know the score in your business!
High performing companies set strategic goals based on their core, distinctive capabilities and have the discipline to focus operations in every business unit, every product line or service offering on the things they do best.
The fiscal challenge is to monetize that strategy to drive profitability and enterprise value creation. If done effectively it helps define strategy and drives profitability. Those that get it right target what matters most - they constantly, if not obsessively, track performance against strategic goals and financial targets.