The goal for developing Profit Picture® Indicators was to create an environment where the owner can see and understand the data and use it for meaningful communication with managers or people who drive day-to-day results. There is always hidden information in financial statements. We want to bring the hidden information to light.
How would you describe your interaction with your financial data?
What we usually find….
- Pack Rat – You print them out, put them on the shelf or digitally store them until you have the time to look at them, or someone (like your banker) asks for them. Pack Rat may use this technique as a defense to hide the fact that he does not fully understand the financials and what they tell him. He may be the type of owner who believes he can solve any problem by generating more revenue.
- Sneak-a-Peek – You look at top line revenue for this month and year-to-date, and bottom line margin before taxes. Mr. Sneak-a-Peek doesn’t consider trends or changes in the contributing factors to their success. This owner just wants the headlines. They have neither the patience nor the inclination to wade through the details. As long as the cash flow is positive in order to pay bills, all is well.
- Eager Beaver – This owner devours the data for the sake of the numbers and generally has an overwhelming number of reports that are difficult to assimilate. Eager Beaver can lose sight of the big picture because he is buried in details. This level of micro management can suppress creativity and authority at the field level. Eager Beaver may not be measuring what’s important.
Have you ever been in a downpour driving your car and the windshield wipers quit working? Makes it mighty hard to see where you are going! You might even miss road signs that cause you to go way out of your way.
Many of the Profit Picture® Indicator users describe their business intelligence life prior to using the visuals – just like being in the blinding downpour with non-working windshield wipers. In the past their CFO brought them pages of detailed spreadsheets nicely assembled. They ask “What are these spreadsheets telling me?” Ever felt this same way, overloaded with details?
Most of our clients admit to facing this same lack of clarity and ability to focus on information overload. We work largely with mid-size businesses. They usually have annual revenues of $5 million and up. Their desire is to create an enterprise someone else would find attractive and is willing to pay them a reasonable price to buy.
Part of the process is to make certain we have a clear understanding of what information you want to use to measure your business, now and for the future. The pyramid is a visual that will help us see your vision for the company and ascertain some of your pain points to determine which dashboards may drive value for you.