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The Bottom
Line
Income-Outcome Creates…
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- A clear understanding of business
dynamics, and how they are represented in financial statements
and analytical tools.
- Practical communication with other
departments and levels, based on the common language of
finance and a shared understanding of the business
- A decision-making environment that
includes all departments of a business, while using standard
financial tools, concepts and measures.
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| When your employees understand business — when they
understand the impact of their actions and decisions on the company
— they make better decisions and improve the company's results and
strategic position. They will understand the financial reasons
for changes in policy, and become more supportive of senior
management, even in difficult times. Morale increases,
everyone is more productive, and they take more ownership in the
business. |
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- Hourly employees impact both the income
statement and the balance sheet through everyday decisions and
actions. We show them how they do it, why they need to strive to
keep the company healthy, and how to improve their performance
and decision-making.
- Salespeople learn that the sales they negotiate
have enormous impact throughout the company; on profit
obviously, but also on cash flow, production, and customer
service. They improve their ability to understand their
customers’ needs and structure win-win sales.
- R&D professionals gain an insight into the
finance department's concerns with time. They write more
thoughtful proposals, which tie up less capital or pay for
themselves more rapidly.
- Production supervisors learn to visualize the
tradeoffs in their daily production scheduling decisions, and to
understand the impact of their inventory and production
decisions on the rest of the company. This allows them to
control costs and inventories more closely.
- Finance personnel increase their ability to
behave proactively. They experience the difficulties inherent in
making operational commitments before the outcome of their
market strategy is known. They also experience the ‘do or die’
of the market, and learn the value of rapid, tactical response.
- Managers become better managers. Because they
have a big picture understanding, and see the interconnected
relationships and impacts, they make better plans. Because they
have acquired the language of the finance department, they write
better reports. And because of the shared understanding of the
needs of the business, there is increased trust and support.
- Everyone gains a shared understanding of
the business, a language of finance to explain concerns, and a
mutual respect and team spirit that comes from understanding other
departments.
With common language and shared understanding, there is increased
speed and accuracy of communication.
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