Profit Blog
Jarmo Manninen & Muutosdraiveri Oy
What does it mean to utilize a company's financial management?
When the prerequisites for a company's financial management are in place and they are utilized in the right way, it means the following:
1. The results achieved by each of the company's resources (people and invested machines) are measured concretely with indicators.
2. The company's budgeted goals have been implemented for all the company's people and invested machines. All the company's people know their responsibility for achieving the company's goals, i.e. which goals they must achieve during the budget period so that the company can achieve its budget goals.
3. Each person in the company receives regular feedback on how well they have succeeded in achieving their personal goals.
4. If a person is unable to achieve their personal budget goals, they should receive the necessary advice and sparring from their superior to correct negative result deviations. If the person is still unable to achieve their budget goals, then their superior is responsible for planning and implementing the necessary solutions to correct the result deviations.
5. Every person in the company has the opportunity to influence the development of the company's performance and, as a result, influence their own earnings development and career in the company.
6. The amount of salary paid to each person in the company is based as much as possible on the results they have achieved. The extent to which the amount of salary paid to a person is based on the achieved personal results, the team's results and the company's results is based on the most concrete, measured and encouraging grounds possible.
In order for all of the above to be realized, the company's superiors have the responsibility to create an atmosphere of cooperation within the company that is based on a positive attitude, aims for common goals, and encourages cooperation, so that the company's goals are continuously achieved and the company's performance continuously develops in accordance with the goals.
Is there a need for development in the company in the matters described above?
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I hope you are interested in this topic and that you will continue to participate.
I have written four books on creating the conditions for financial management in a company, and they are available from well-stocked bookshops and online bookstores in Finland, for example from BoD (Books On Demand) at:
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