By Rich Bond
Not having a grip on your business may be because you are using the wrong information to manage your company.
When I took over my family’s 16-year-old business, it was difficult for all of us – me, my brother, and my father could rarely agree on what to do. We had long, often unpleasant, monthly meetings to review the financials.
After a difficult year, I developed a one-page schedule of mainly operational statistics with a few financial measures thrown in.
Our monthly meetings got shorter, pleasanter, and more productive.
My family business more than doubled sales and profits in 2 years, proving that less information can be much more powerful – when it’s the RIGHT information.
In today’s parlance, schedules like the one I made up are called SCORECARDS. Gino Wickman, the founder of EOS, says that the adoption of a scorecard is the single most powerful thing a company can do.
A good scorecard can act as a PREDICTOR of what will be happening in the business. Financial statements only tell you what happened. A good scorecard, properly used, identifies issues when they can be dealt with more easily.
As a financial recruiter, I have placed people who work with management to give them the tools they need to manage their businesses more effectively and profitably. A scorecard is only one of many powerful tools a good finance person can share with you.
In a 10-minute, no obligation call, I can help you determine if your finance person is helping or hurting your business and recommend actions to correct the situation if warranted.