Profit Blog

Jarmo Manninen & Muutosdraiveri Oy


What does a company's management produce for your company?

8. huhtikuuta 2025

When you ask companies what principles they use in managing a company, I have received, among others, the following list of answers:

1. The company's management leads the company and the company's other personnel produce results, because the company's management is responsible for the company's results.

2. The company's management does not directly produce results for the company, but the company's management's task is to indirectly influence the company's results through its actions. The effects of a company's operations are diverse, and especially because of this, it is impossible to measure the impact of the company's management's actions on the company's results.

I disagree with all of the opinions presented above. Here is my reasoning.

When the prerequisites for a company's financial management are in place, it means that the company's goals have been implemented throughout the entire company's organization by all of the company's resources, so that each resource in the company knows which changes they are responsible for implementing in order to achieve the company's budget goals. In this case, each resource in the company is consciously responsible for their part in the company's results to the company's management, who is ultimately responsible for the company's results to the company's owners.

The basic task of a company's management is to put the company's financial management conditions in order and keep them in order. When the company's management has put the company's financial management conditions in order, only then will it enable the company to be managed effectively so that the resources invested by the company are constantly operating efficiently. After this, the company's management must influence the company's performance and results in particular in the following three key ways:

1. By leading

2. By indirectly serving management

3. By direct work

There are management performance indicators for all of these.

All markets today are so efficient that the operating methods according to the companies' answers I described above are no longer sufficient for economic success in them. Today, all people working in a company must define measurable goals for the company's performance, monitor their implementation and react to deviations. In companies, every resource must understand how their work affects the company's performance and how they can influence the company's performance and results by changing their operations. This is a requirement for continuous development of companies, which creates the foundation for the continuation of the company's business.

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:













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