Note: Running Fridays in FromGregsHead.com, is a continuing series of tips brought to you by Greg Price. These run Saturday mornings during the BusinessMaker’s Radio Show on KPRC 950AM. Audio files can be found on the Entrepreneur’s Playbook™ page of the PKF Texas website.
As a CPA, I get to work with lots of organizations of all sizes and types and yet I am perplexed by a fundamental fact that I see at most organizations. At a time when corporate strategy and budgets could be aligned to drive an organization forward, I see few instances when both work together in concert.
As budgets go, most are probably pretty accurate on what they report, the inflow and outflow of cash and a report detailing the background on each. What they lack is the intersection of other non-financial performance benchmarks that are necessary to supplement your budget and give you a Balanced Scorecard that can assist you in driving your company to the next level. A study conducted by the Harvard Business Review over 10years ago is still valid in this area.
Three key non-financial areas that you can consider include:
- Your Human Capital experience. The training and learning programs you have in place.
- Your relationship with your customers.
- Agreement on your core internal processes.
As easy as this sounds, many companies struggle to gain consensus in just one, let alone these areas. By bringing these areas into focus you can begin to set your balanced scorecard for driving operational and financial success.