Cash is king. Value lies in a business’ ability to generate cash flow now and into the future. Having a business that does this requires that the business process is firing on all cylinders. The business is only as strong as its weakest link, thus requiring attention of each function of the process.
Sales and Marketing – is probably out of order. Marketing is required to let prospects know what you have to offer, that your lights on, and that you are open for business. The key to both sales and marketing is for you to educate the prospects as to how your solutions meet their needs.
Production and Delivery – is probably the greatest way to assure your customers that you can provide for and meet their needs. Without meeting the customers’ needs on their terms, your chance of retaining them as a “sticky” customer is significantly reduced.
Finance – is not bookkeeping. Good financial records provide the information necessary to make value driving decisions on pricing, capital expenditures, budgets and capital acquisition for growth.
Talent Management and Resources – involves one of the key elements of a successful business. The element of highly motivated, well-trained employees is essential to deliver solutions to customer needs. Without proper talent management, finding, onboarding, grooming, and transitioning talent is questionable at best.
Key Performance Indicators is the guidance a business needs to manage growth and groom the business operations. These metrics can be general or very detailed depending on the size and type of the business and functions that are needed to deliver its products and services. The KPIs chosen should be key indicators of whether the business is on track or whether adjustments should be made to the current business plan to get back on track. The following metrics are a few of the general KPIs used to manage progress:
- Workforce Development
Remember, all value is created by knowing how to generate cash. While some value lies in the tangible assets, the greatest value lies in the intellectual asset – know how.