LEVERAGING NUMBERS
Using and leveraging numbers in a company is vital to make informed decisions, evaluate performance, and plan for the future.
They provide facts that guide smart decision-making, as close to the reality of the company as it gets, and help compare the organization to industry standards. Enabling scenarios, predictions and resource allocation, they ensure much more efficient planifications. By monitoring numbers closely, issues can be detected early and addressed promptly.
At Marketrotters, we help companies make sense of their numbers, foresee their cash flow and prepare budgets to introduce realistic objectives for a new year and plan accordingly in all departments.
CASH FLOW MANAGEMENT
Cash flow is Queen! Often, companies fear losses in their annual balance thinking it would mean the end. That is not forcefully true. What is a 100% true is this: when a company is in payement default, then the end is near.
That is why cash flow must be monitored on a very regular basis to keep track of financial movements and payment delays.
Financial health
Regular monitoring of cash flow provides valuable insights into the financial health of the business. It allows management to make informed decisions regarding budgeting, investment opportunities, and overall financial strategy.
Using our tool and with our training, you will be able to identify patterns, trends, and areas that may require attention or improvement, enabling proactive measures to maintain a healthy and sustainable cash flow position.
Monitoring delays
By closely tracking cash inflows and outflows, the company can anticipate and address any potential issues, such as delayed payments from customers or unexpected expenses, and take appropriate measures to manage them effectively.
In addition to our tool, we help you establish clear payment terms to customers or suppliers to build a strong business relationship and put an effective reminder process in place to avoid delays and uncertainties.
BUDGETS & PROJECTIONS
Budgeting is a dynamic process and may require flexibility as circumstances change. By combining historical cost analysis with future profit anticipation, you can create a well-rounded budget that provides a roadmap for financial success.
5 steps to make a strong budget
When preparing budgets, it is important to consider both historical data and projections:
We begin by examining costs from previous years. We will be able to identify trends, seasonal variations, and any significant cost fluctuations. It will also and most importantly help us understand your spending patterns, identify areas where you could potentially reduce expenses, and provide a baseline for your budgeting process.
2. Once we have a clear understanding of your historical costs, it is time to focus on your profits. We analyze your previous years' financial statements to evaluate your revenue sources, profit margins, and overall profitability. It will help you identify which aspects of your business are generating the most revenue, using resources efficiently and contributing to your bottom line.
3. After reviewing past costs and assessing profitability, shift your focus to the future. Start by anticipating your expected profits, considering factors such as market trends, industry forecasts, customer demand, and any planned initiatives or changes in your business strategy. Projecting your profits allows you to set realistic revenue targets and plan your budget accordingly.
4. Once you have estimated your expected profits, you can allocate costs based on your revenue projections. Identify the key cost drivers for your business and consider any changes or adjustments needed to achieve your projected profits.
5. Remember that budgeting is an iterative process, so it's crucial to regularly review and refine your budget as new information become available.
When budgets are done, they become the starting point for each department's action plan, adapting strategies to the new reality and keeping a flexible mindset to be able to adjust if needed.
OBJECTIVES & KEY RESULTS (OKRs)
OKR stands for Objectives and Key Results. The methodology was created by Andy Grove at Intel then taught to John Doerr who crafted the name and introduced the philosophy to Google’s founders in 1999. In 2018, he authored Measure What Matters then created the platform WhatMatters.com to share goal setting techniques globally.
OKRs typically start at the top level of an organization and cascade down to lower levels, ensuring alignment and focus throughout the hierarchy.
Objectives
Objectives are the qualitative and ambitious goals that an organization, team, or individual aims to achieve within a defined time period.
They provide a clear direction and purpose, guiding the focus and efforts of individuals and teams. Typically concise, inspirng, and aligned with the overall mission and vision of the organization, objectives in OKRs should be challenging yet attainable, pushing individuals and teams to strive for significant progress and growth.
Objectives serve as a rallying point, motivating and aligning everyone towards a common goal. They provide a sense of purpose and direction in the pursuit of excellence.
Company Objectives: We help senior management team define high-level objectives that are directly linked to the strategic priorities of the organization. These objectives capture the overarching goals that the company wants to achieve within a specific timeframe, such as a quarter or a year.
Department/Team Objectives: Once the objectives of the company are established, they are communicated to different departments or teams within the organization. The department or team leaders then identify their own objectives that align with and contribute to the company objectives. These goals should support the overall company goals while considering the specific focus and responsibilities of each department or team.
Key Results
Key results are developed for each objective, representing the specific, measurable outcomes that indicate progress towards achieving the objectives.
They have to be aligned with the SMART (Specific, Measurable, Achievable, Relevant, Time-bound) framework.
Specific: definition of the objective obtained through targeting.
Measurable: quantitative or qualitative value that will be measured and transmitted in the report.
Achievable: the goal must remain achievable. The salesperson can for example add his estimated certainty coefficient concerning the achievement of the objective.
Relevant: The ambition of the goal varies depending on internal and external circumstances of the team. Each of the actors linked to the objective must have accepted it.
Time-bound: a deadline is essential. Intermediate dates of points and analyzes can also be planned (to be included for example in a weekly report).
They serve as the basis for evaluating progress and success.
Iterative process
Once the OKRs are defined, we help managers and team members review the status of the objectives and key results, discuss challenges, share updates, and provide support where needed. This iterative process allows for continuous improvement and course correction if necessary.
PLAN FOR THE FUTURE!
