Your financial statements are company
performance indicators and are the ultimate report card of your
business health. Mikael Meir can help you define key drivers, and a
way of measuring them, while setting up a process so they’re in an
evolving state of improvement. Have you defined the key financial
performance metrics in your business that drive top line growth,
bottom line growth and equity value? I recommend defining a minimum
of two metrics from your balance sheet and income statement that
represent key drivers of economic value in your business. A few
examples to consider might be profit per employee, client
acquisition cost, average sales value, number of leads to conversion
rate, inventory days, distributors in force, return on capital
employed etc.
The critical metrics will depend on your business and industry, but
it is important to conduct a financial performance analysis, to
understand the key drivers behind your business, and clarify the
impact of changes to these drivers and your bottom line through
financial performance measurement and modeling. For instance, what
is the cash flow impact if you increase sales by 20% or launch a new
product line? Which strategies will maximize profitability?
I often recommend to clients seeking increases in enterprise value, to determine and consistently measure
key foundational sources of value for their business, optimize
strategy within this understanding, and then focus team energy toward constant improvement
in those value drivers through the integration of team scorecards
with corporate quarterly goals. I help clients turn numbers into
knowledge and knowledge into sound business strategy. This in turn
drives business productivity - increases in cash flow, profit
and equity value.
For more information on how to improve your company's financial performance, please fill out the request form below:
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