Many executives have been taught to use the Profit & Loss Statement as the most important tool to analyze how well the business is doing. This is like trying to drive your car with the windshield covered by fog.

Why? Because you can't clearly see where you are going WHILE you are going there. A P&L is often completed one to two weeks following month end.

Can you recall what was being done the first or second week of last month? Those actions are affecting your business now. Therefore, P&L information arrives to you too long after the fact.

Although the P/L is important, it should not be the primary tool to manage a business.

Overlooked Production Areas

Revenue is the result of production. Therefore, the most important tool managment has is the one that answers the question: "How productive is each area of my business?"

Every organization is composed of distinct production areas. This holds true for a single-person business or a multi-national corporation. The difference is how often a function is done. A single-person operation may schedule a key production area for two hours one day each week, while a large corporation may have five employees doing the same type of task full-time, every day.

Each production area is dependent upon the other, and each affects the quality and quantity of the others' output.

The Answers You Need to Know

•  What are the key parts of every organization?
•  How does each each relate to each other?
•  How can I know how effective each employee is?
•  How can I take the guess work out of managing?

Contact us for the answers.