Bringing Value to The Table... Issue 9.30.22
Fernando Lopez
CHIEF FINANCIAL OFFICER AND OPERATIONS | GLOBAL LEADER specializing in forward-thinking Finance, Operations and leading People to transform into excellence. Building companies to thrive even through stormy weather.
Part Three (of three)
In this last part of three, as you go about your business you must think ahead all the time, to see or foresee what is coming and at the same time what you want to CREATE. Business strategy, operations and people is the order you follow for execution of your budget (or plan). ?
As I mentioned last week, this graph illustrates in general terms what most companies do. Nothing new the chart, right? The big difference is in the integration process, let me explain with the following steps:
1)?????Each area is presented with the Business plan and the target numbers for the following period
2)?????Each area generates their own numbers and targets in line with the overall goal of the company.
3)?????Consolidate all the information and assumptions and discuss all the INTERACTIONS -area by area- that impact the rest of the areas.
4)?????Then, each area integrates the additional information in their own departments and run the numbers again.
5)?????Then, consolidate everything and compare results with the original goals and targets
6)?????Repeat as necessary!
Normally, this process may take two or three rounds. Gradually you will notice a change in the behavior and performance across the board.
This is not a magic pill, this takes time.
One thing is for sure, when you combine this with your own purpose, crusade or BIG WHY to execute your company becomes UNSTOPPABLE!
Think about it!