Tulosblogi
Jarmo Manninen & Muutosdraiveri Oy
What is the basis for the growth of a company's profitability?
Planning for the growth of a company's profitability can only begin at the time of review when you know the answers to the following questions:
1. How profitable is the company's business at the time of review, e.g. by product, service, project, vehicle, customer, business function, region, etc., depending on the company's business?
2. What are the efficiency figures for the company's operations at the time of review by function (marketing, sales, production, financial administration, management)?
3. What are the capacity utilization rates of the company's resources, i.e. the people and machines working in the company, at the time of review?
4. What are the profit-making capabilities of the company's operations at the time of review?
5. What are the profit-making capabilities of the company's resources at the time of review?
Planning the growth of a company's profitability is necessary in connection with budgeting and when the company's budgeted profitability is not being realized during the budgeted period.
When you have the answers to the questions I asked above, then you have the opportunity to start planning profitable and sustainable growth based on the company's business and its structure at the time of the review.
I encourage you to share this blog post of mine on social media. 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 can continue to be involved.
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:
https://kirjakauppa.bod.fi/catalogsearch/result/?q=jarmo+manninen
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