The book describes five key business drivers (cash, profits, assets, growth, and people) that we have taught thousands of employees at hundreds of companies over the past 14 years. Discover the importance of focusing on five key factors (cash, profits, assets, growth, and people) to make money and maintain profitable growth. To learn more about your financial statements, you should ask the right questions to the right people. For example, you can ask your content marketing manager if you should consider increasing website traffic as a driving factor for the website.
Your people are at the center of the eleven key factors. The growth of a company depends on the people associated with it, whether they are its employees, customers, or other important stakeholders. As your business grows, you need to develop a solid infrastructure and keep fine-tuning it. The infrastructure can be anything from your IT systems and processes to basic office space.
When a company performs well in all of its key business factors, it's an objective sign of success. Technology has brought with it many opportunities and challenges, and you need to harness its power to improve your business and achieve a competitive advantage. We have identified business acumen as a fundamental competence and capability for leaders, as it helps to eliminate silos, accelerate decision-making, and accelerate performance using a common language for all companies: their finances. They are the ones who will drive your company's cash, profits, assets, and growth, so be sure to meet, exceed, and anticipate their needs, wants, and expectations.
It goes without saying that no company can grow without the right form of financial banking, at the right time. In short, keep open communication with other decision makers and always consider their contributions when making important business decisions, such as establishing the main business drivers. These 5 key factors help you understand how even the most complicated businesses can be evaluated and improved. Yes, managing all business engines together can be a challenge, especially when the company grows and the organizational structure becomes more complex.
Understanding how growth strategies affect business performance and the bottom line will provide a smoother roadmap to success. For these business drivers to be useful, they must be able to be controlled, measured, and managed. Typically, companies are looking for a high stock turnover rate, as this reflects that all capital resources are being used efficiently. You can inject more capital, add a new type of employee reward structure, improve the reporting system, or anything else that fits your business.
It has allowed companies to make smarter and faster decisions, respond efficiently to changing customer needs, improve business performance, and manage risks. This is why companies use multiple metrics to measure their performance, and these metrics are known as business drivers.
