The only constant in business in change. Unexpected changes to business environments sometimes happen because of the unintended consequences of decisions that are made internally. Other times, changes result from things that occur outside of the business’ control, such as regulatory changes, actions by competitors, or other changes in market conditions. Unfortunately, unexpected downturns sometimes prompt business leaders to make...
Revenue – expenses = net income. It doesn’t take a math whiz to understand that reducing expenses increases net income, at least in the short term. But cutting the wrong expenses can have disastrous effects on long-term results. Either formally or informally, every decision to incur an expense is the result of a cost-benefit analysis. Each time you are presented...
The Industrial Revolution fueled economic growth, introduced free enterprise, and provided more opportunity to Americans as the need for more workers in factories skyrocketed. Unfortunately, however, typical workdays during this era involved employees performing repetitive tasks for long hours. Workers generally were not required, or sometimes even allowed, to make decisions about the work they were doing day to day. With...
What gets measured gets managed, right? It's easy to come up with an alphabet soup of metrics to look at every month. Things like ROI, EBITDA, ROCE, COS, EPS, etc. But is that enough? We can look at financial measures all day, but one thing will never change…..the past. Financial measures are lagging indicators - ones that only tell us what...