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A growing successful business has to make several quantum leaps as it progresses through its commercial life. Each one in its own way involves a make or break decision for the proprietor of the business. At first when the business is in its formative stages the information and knowledge needed to make the quantum leap is adequately gathered by the proprietor, but as the company grows the quantum leaps become bigger and come with greater consequences.
One such leap is the appointment of a financial director. Whilst the need for advice from sources well versed in the finances of the company and the commercial world is readily apparent, the source of that advice is not so apparent. In the days of old fashioned and grey haired bank managers, a trip to the bank was met with good impoartial advice. Sadly such beings no longer exist. The company's accountant is very good at historical figures and balance sheets but not so good at the future behaviour of the company.
What is needed is an experienced financial director - but at what cost?- £50km plus a stake in the business? How much cost does that place on his opinions?
What is really needed is a part time financial director who is there when he is wanted and not there when he is not. In this way the company has only to pay a fraction of the price but gets someone who knows the company's financial position and is experienced in commercial financial matters. When the need eventually develops into a full time position the part time financail director can be replaced by someone who can then meet the specific needs of the company.
In The Media
In the so-called new economy it is hard to define what normal is anymore. Yet is has never been more important for owners and managers of small and medium-sized enterprises in particular to know where they stand and how they can improve their operations.
In the current rapidly moving economy, where the fast simply eat up the slow, organisations need to continually re-think their structures, products, processes and markets. They must be quicker to market, more customer focused, more innovative, nimbler, more flexible and ever ready to handle rapid change. This is imperative for continual change and improvement translates into one key capability, the need for continuous organisational learning.
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It is something every business needs to excel at and the lessons come from making mistakes, learning from industry leaders and from competitors, customers, suppliers, academic partners and other sectors.
One of the key tools for learning is benchmarking. It enables forward-looking organisations to measure their performance against the best in the business and adapt best practice as appropriate.Learning through benchmarking should not only relate to traditional areas of performance like finance but should cover a balanced portfolio of practices and capabilities to bring about both short and long term success.
Now more then ever managers need to take a balanced view of their organisations and improve all aspects from shareholders? requirements to customer satisfaction to employee motivation and corporate social responsibility. The Benchmark Index is a key tool that can enable businesses of all kinds to measure their performance and improve their competitiveness and profitability.
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