Profit Blog

Jarmo Manninen & Muutosdraiveri Oy


What are the supplementary information for the STARTING SITUATION of a company's financial management?

2. huhtikuuta 2025

 The prerequisite for developing a company's profitability is that you know the STARTING SITUATION, i.e. how the company's realized profitability figures and the number of deliveries are distributed by product and service. Although profitability is definitely the most important indicator of a company's performance figures, knowledge of the company's BASELINE is not necessarily sufficient for the company's financial management. For this reason, in the following, I will examine issues related to the company's business change needs from several perspectives.

The development of a company's business begins with defining goals. When they are known, the difference between the goals and the STARTING SITUATION, i.e. the company's current realized figures, is equal to the company's change needs to achieve the goals. In order for the company's financial operational management to be comprehensive, the following perspectives must be taken into account in its planning:

1. Realized profitability figures and the distribution of the number of deliveries by product and service.

2. Realized efficiency of all the company's operations.

3. The actual utilization rates of the company's resources, i.e. all people and invested machines.

4. The actualization of the company's working capital tied up in inventories (raw materials, semi-finished products and finished products).

In practice, this means that the company plans a solution for how to monitor the actual profitability figures in the company's financial management system. At the same time, the company must plan solutions for how to make the actual efficiencies of all activities, the actual utilization rates of resources and the actualizations of working capital tied up in inventories available to the company's operational management. In this context, it is worth noting that not all of these realizations need to and should be collected from all companies, but the need for collection must be determined based on each company's business and need for change. I am happy to help companies find solutions for company-specific needs.

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:







Share this article

Recent posts

24. kesäkuuta 2025
When a company first encounters a situation where the company's cumulative profitability targets are not being met, the company should use its own resources to create a concrete action plan of corrective measures and implement it in such a way that the company will achieve the company's cumulative profitability targets within the specified timeframe. If the company is unable to achieve the company's cumulative profitability targets within the specified timeframe, the company should seek the right kind of external expertise with the right kind of agreement to remedy the situation.
17. kesäkuuta 2025
In my opinion, the basis of a company's business should be that everyone in the company must do their job and fulfill their responsibilities in the company so that the company's goals are always achieved. If a person's best effort is not enough, then they must be able to do better, either on their own or with the advice of someone else. If a person's own abilities are not enough to achieve their goals, then everyone is obliged to ask for help from their superior. In turn, the superior must always be obliged to either help in the situation in question, either by helping themselves or by arranging help. It is not enough that everyone has the right to ask for help from their superior in a situation where doing their best is not enough, but everyone also has the obligation to use this right without unnecessary delay. In this case too, wasting time will not fix the problem; rather, wasting time unnecessarily multiplies the problem. In well-functioning companies, a person can always ask for help from their colleagues if necessary. The idea behind helping someone is not that the helper's job is to do the work for the person being helped. The idea is that with the help of the helper, the person being helped learns from the help they receive so that they can achieve their goals after this situation without the helper. By doing this, the latent abilities and creative ability of people to find new solutions are put to use, which has proven to be a very significant potential in my experience. In order to achieve this in a company, the company's work culture must be able to be developed to be positive and encouraging, and such that problem situations are not hidden in the company, but rather they dare to bring them up as soon as they arise.
10. kesäkuuta 2025
A company's work culture tells you how the company operates. In other words, a company's work culture tells you about the ways of operating in the company. A good work culture promotes the commitment, motivation, productivity, job satisfaction and well-being of the company's people, while a bad work culture typically leads to dissatisfaction, high turnover and poor performance. I have visited hundreds of companies. When you walk through the door of a company and observe the activities in the company for a moment, this already gives you the first impression of what kind of work culture the company has.