How well do you really know your numbers? This week I worked with business owners to test their ability to make sound decisions to improve the financial position for an imaginary business.
Over eight hours, business owners were put to the test in a finance simulation where they made marketing and operational decisions that impacted profitability, cash flow and balance sheet performance.
The results were interesting. When faced with each round of decisions, groups on top of their numbers could make both strategic and tactical decisions to their advantage. But groups confused about their finances typically sold themselves short or took unnecessary risks destroying economic value.
What’s the lesson for those running a business? Unless you’re on top of the numbers, you’ll never be able to optimize the potential value of your business. Why shortchange yourself? All you need are the right financial KPI’s and a dashboard to monitor and manage them.
#strategy #finance #omp
