Profit Blog

Jarmo Manninen & Muutosdraiveri Oy


Is this how your company operates?

7. tammikuuta 2025

Hopefully the following example doesn't tell you how your company operates!

Does your company operate in such a way that the budget goals are first made in the form of a profit and loss statement and their realization is monitored. Every month, we discuss whether the company's income and expenses have been allocated to the correct months, when the monthly result does not correspond to the monthly result target. It is not possible to reliably find out the root causes of the non-fulfilment of goals in the company, but everyone explains and guesses as best they can the reasons for what happened and suggests corrective measures based on their perception and understanding. The corrective measures that are decided to be implemented are chosen based on who and what has been presented. When the root causes of what happened in the company are not known, it is also not possible to be sure that the company's goals will be realized as a result of the implementation of the decided corrective measures. This continues year after year until the company is in a profitability crisis and possibly also in a cash crisis. It is decided to remedy the situation by reducing the number of personnel and personnel costs in the company so much that the company's profit figures can be shown in accordance with the targets.

If the situation in your company is similar to the one described above, then your company does not have the conditions for financial management in order. I will tell you what this means in practice in my next blog posts.

I encourage you to share this blog post of mine on social media. If you have any questions, I will try to answer them as much as possible, and if you have any suggestions for the topics of the next blog posts, I will gladly accept them.

I hope that you were interested in this matter and that you will be able to participate in the future.

I have written four books on creating the conditions for the company's financial management, and they are available in well-stocked bookstores and online bookstores in Finland, for example from BoD (Books On Demand) at:








 

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