Every business runs on dollars — but there are limits to purely financial analysis. When tracking performance and working to maximize the output of critical measures, it is important to look beyond just financial indicators and consider other factors as well. In today’s newsletter, I share examples of additional, quantity-related measures that should be included in the overall mix. Read more…

In business, change isn’t just inevitable — it’s essential for survival and growth. But making change happen in any organization can be difficult; it requires more than just a few tweaks at the edges, here and there. In today’s newsletter, I share my firsthand experiences with organizational change and offer insights into what really drives successful transformations. By applying these

When a business is in financial trouble, an understanding of its “liquidation value” is essential. Liquidation value is the value of the monetized components of the business, such as accounts receivables, equipment, etc., should the business not be sold as an ongoing concern. Who gets what is then a function of creditor claims on specific assets. This month, I explain

Financial statements are intended to serve a purpose, whether that means sharing how a business is doing with outside entities or managing internally. There is no one-size-fits-all format. Today’s newsletter looks at the most important factors to consider when determining which statements are appropriate for which users and situations. Read more…
The post Different Situations, Different Financial Statements (September 2023)

Opportunity cost is an essential, but often misunderstood, business concept. In short, it is about determining the highest use and highest value of a given resource, whether that’s time, money, production capacity, or something else. In today’s newsletter we look at opportunity cost, its two most critical components, and offer suggestions for using it properly when evaluating alternative courses of