Chief Executive

DECEMBER 2, 2022

At a board meeting earlier this spring, I gave a data-supported presentation where I explained how metrics such as retention, engagement, satisfaction, recruiting/offer win rates and turnover led to the statistic that matters most to me: revenue per employee (RPE).

Balance Sheet 98

Balance Sheet Retention Metrics Recruitment 98

Get Lighthouse

JULY 1, 2022

When founders and CEOs are asked what their biggest challenge is, they typically fall among this set: Turnover Productivity Process management Shipping times/revenue cycles Job role design People and leadership pipelines Relationships with customers The need to be more innovative. Employee development begins at the managerial level.

Performance Review 135

Performance Review Balance Sheet Performance Management Manager 135

Chief Executive

JUNE 13, 2022

The Year Ahead The proportion of CEOs forecasting increases in profits and revenues over the coming year continued to fall in June, now down 21 and 10 percent respectively. Sixty-three percent said they expect revenues to rise, but that proportion is down from 70 percent in May and 88 percent in January.

Balance Sheet 98

Balance Sheet Government Administration Recruitment 98

Peter Winick

FEBRUARY 6, 2023

So Simon’s business blew up, lost a ton of revenue, lost a lot of sleep, lost a lot of stuff, and then built it back up in a in a more digital, really amazing way. You know how many people have been 30% of their revenue with one client or based on a technology or a contract that expires or something like that.

Travel 173

Travel Sales Sales Media 173

Chief Executive

SEPTEMBER 23, 2022

FWIW, CEO100 is our peer network exclusively for CEOs who run complex organizations with more than $100 million in revenues— learn more about membership ; it’s excellent). Stress test a simplified P&L and balance sheet for your company under different volume changes (include interest, taxes and capex—not just EBITDA).

Balance Sheet 52

Balance Sheet Fixed Costs Revenue Process Improvement 52

LSA Global

MAY 9, 2019

How can you expect to pitch a new strategy or product if you are unable to articulate its potential revenue, costs, and return on investment? Study the Balance Sheet. With term definitions in hand, analyze your company’s balance sheet. For example, what happens when revenue falls or expenses increase?

Balance Sheet 28

Balance Sheet Cash Flow Metrics Revenue 28

Chief Executive

MAY 26, 2022

CFOs have the data; you need to massage it, P&L and balance sheets, in ways that people can understand. CFOs may want to guide their companies “to grow cash generation” instead of revenues per se. Make it common-sensical.”. That may mean fewer sales, cutting tails off — but they’re absorbing your cash.

Cash Flow 52

Cash Flow Digital Transformation Fixed Costs Balance Sheet 52

Harvard Business Review

JANUARY 28, 2014

Pundits had proclaimed that the newspaper industry was a shuffling dinosaur as the commercial Internet took off in the late 1990s, yet most companies still had healthy financial statements and stable balance sheets. Industry leaders were buoyant because advertising revenues continued to grow over the next couple of years.

Revenue 13

Revenue Advertising Balance Sheet Marketing 13

Zenefits

NOVEMBER 4, 2022

Inventory surpluses (along with shortages) are leaving businesses with too many products on their balance sheets. Still, inflation is eroding their confidence and ability to recruit and hire, invest in their companies, and grow as an enterprise. After inflation, SMBs’ most significant concerns are: Supply chain problems. In their Oct.

Balance Sheet 52

Balance Sheet Small Business Energy Onboarding 52

Harvard Business Review

MARCH 31, 2017

“The decision-makers will want to see a simple model that shows revenue, costs, overhead, and cash flow,” he says. The most important concepts to grasp are “how to measure profitability, EBITDA, operating income, revenue, and operating expenses,” he says. What if revenue was higher? Related Video.

Balance Sheet 15

Balance Sheet Metrics Revenue Cash Flow 15

Harvard Business Review

JULY 13, 2015

Both of these numbers come from your company’s balance sheet. So you want to strike a balance that’s appropriate for your industry. That’s partly why, says Knight, Apple started to get rid of cash and pay out dividends to shareholders and added debt to its balance sheet in the last month or so.

Accounts Payable 15

Accounts Payable Balance Sheet Cash Flow Accounts 15

Harvard Business Review

APRIL 9, 2015

It indicates what is left after all costs and expenses are subtracted from the company’s revenue. For example, “revenue” isn’t a cash-based number: A company can record revenue whenever it ships a good or delivers a service to a customer, whether or not the customer has paid the bill.

ROI 15

ROI Cash Flow Revenue Balance Sheet 15

Harvard Business Review

SEPTEMBER 16, 2016

For example, at the end of its 2015 fiscal year, Apple’s balance sheet stated tangible assets of $290 billion as a contribution to its annual revenues, with approximately $141 billion worth of intangible assets — a combination of intellectual capital, brand equity, and (investor and consumer) goodwill.

Balance Sheet 13

Balance Sheet Assets Insurance Operations 13

Harvard Business Review

MARCH 14, 2017

First, blockchain could help relieve a large balance-sheet liability that many in the industry are facing. Loyalty programs have long relied on cobranded cards and partnerships to sell points and generate incremental revenue. Early adopters could benefit considerably.

Travel 15

Travel Balance Sheet Banking Revenue 15

Harvard Business Review

JUNE 27, 2014

Even if your firm has a healthy employee base and a strong balance sheet, chances are good that it’s about to face a significant shortage of qualified managers. The companies we studied in 2007 expected to increase their developing market revenues by 88% through 2012, and that trend has intensified.

Balance Sheet 14

Balance Sheet Retention Recruitment Revenue 14

Harvard Business Review

NOVEMBER 22, 2016

For one telecom provider, convincing just 10% of those customers to switch one service from a competitor was worth up to $480 million in incremental annual revenue. Take a balance-sheet view. For example, Bain & Company’s recent analysis of the U.S. Create dynamic, high-resolution customer profiles.

Balance Sheet 12

Balance Sheet Insurance Telecommunications Banking 12

Harvard Business Review

APRIL 28, 2015

That fact becomes apparent when you juxtapose the balance sheet of a company like Microsoft with the balance sheet of a company like Siemens. Unlike their industrial peers, managers of asset-light businesses focus little on the balance sheet. It’s as simple as that. The challenge?

Balance Sheet 14

Balance Sheet Manager Assets Software 14

Harvard Business Review

FEBRUARY 26, 2018

Similarly, Microsoft paid $26 billion for loss-making LinkedIn in 2016, and Facebook paid $19 billion for WhatsApp in 2014 when it had no revenues or profits. This becomes clear when you look at a company’s two most important financial statements: the balance sheet and the income statement.

Balance Sheet 8

Balance Sheet Assets Revenue Accounts 8

Harvard Business Review

MAY 8, 2012

In a rapidly changing industry ecosystem, heavy investments in hard infrastructure can burden balance sheets and limit flexibility. Bharti has enjoyed compounded annual growth in sales revenues of 120% and growth in net profits of 282% per year between 2003 and 2010. to $0.005 per minute, perhaps the lowest rates in the world.

Balance Sheet 13

Balance Sheet Variable Costs Telecommunications Fixed Costs 13

Harvard Business Review

AUGUST 24, 2012

Since customers don't complain about that, you've lost the opportunity to collect revenue you're due. While in everyday language, it is plain enough that poor-quality data are liabilities and high-quality data are assets, they don't appear on the balance sheet.

Balance Sheet 15

Balance Sheet Operations Assets Revenue 15

Harvard Business Review

JULY 15, 2016

Today the company has annual revenues above $20 billion, competes in healthcare and electronics operations and derives significant revenues from document solutions. After all, they have many capabilities that entrants are racing to replicate, such as access to markets, technologies, and healthy balance sheets.

Balance Sheet 15

Balance Sheet Digital Transformation Engineering Revenue 15

Harvard Business Review

JULY 12, 2017

It breeds indifference, which in turn breeds a yawning gap between underwriters, whose balance sheets absorb risk (the risk takers), and customers, whose enterprises create risks (the risk makers). In 2015 these top three players generated 48% of the revenues among the top 50 brokers in the U.S.

Insurance 15

Insurance Balance Sheet Assets Revenue 15

Harvard Business Review

APRIL 4, 2016

” Another reason you might see a very high ROA is if a company is messing with its balance sheet, explains Knight. “Sales are subject to rules as to when the revenue can be recorded. ” With ROE, you also need to remember that equity is the book value on the balance sheet. Take Enron.

Assets 14

Assets Balance Sheet Cash Flow Banking 14

Harvard Business Review

JUNE 27, 2017

Importantly, this advancement in controls technology allows the lighting system to be controlled, owned, and operated by a third party, shifting the investment off the building’s balance sheet. How It Works. Similar to other as-a-service models, LaaS allows a customer to “rent” its ceilings to a service provider.

Balance Sheet 13

Balance Sheet Energy Operations Assets 13

Harvard Business Review

FEBRUARY 7, 2013

Many of the entries on a company's income statement and balance sheet reflect estimates, assumptions, and procedural rules. The other might want to allow for major costs on the service end, and so will wait until the service contract expires to record much of the revenue. Financial numbers, though, are different.

Balance Sheet 9

Balance Sheet Revenue Accounts Software 9

Harvard Business Review

SEPTEMBER 14, 2015

If your business has $2,750 in current assets and owes $1,174 in current liabilities (again, you can pull these figures from your company’s balance sheet) then the current ratio is: (Note that the ratio isn’t usually expressed in a percentage). Here’s an example of how the calculation is done.

Accounts Payable 15

Accounts Payable Assets Balance Sheet Accounts 15

Harvard Business Review

OCTOBER 31, 2017

That strengthened investment banks’ balance sheets by forcing them to scale back and to change the nature of the risks they take. As a result, their balance sheets are half as large on a risk-adjusted basis, and the capital they hold against trading positions has doubled over the past decade, our research shows.

Banking 8

Banking Balance Sheet Assets Compliance 8

Harvard Business Review

OCTOBER 11, 2018

.” With all these success stories and such a heady reputation, one might expect to see companies trumpeting sustained revenue growth, permanent reductions in cost structures, dramatic improvements in customer satisfaction, and other benefits. Except for very few, this hasn’t happened.

Balance Sheet 14

Balance Sheet Assets Scaling Engineering 14

Harvard Business Review

DECEMBER 28, 2012

Since the Bush tax cuts of the early 2000s, the US federal government has taken in about 18 percent of GDP in revenues while spending 25 percent. That's where the US budget deficit comes from. Multiply that over time, and you get a large proportion of the "out of control debt" that Congress has been banging on about since 2008.

Balance Sheet 14

Balance Sheet Government Media Engineering 14

Harvard Business Review

APRIL 10, 2013

Scale-up means growth, and growth means jobs, wealth, and tax revenues. In a recent post on HBR.org , I called attention to the fact that we entrepreneurship promoters are too focused on start-up, and need to re-balance the dialog to support scale-up as well. Even better. Governments and shareholders should have different motivations.

Balance Sheet 10

Balance Sheet Government Scaling Cash Flow 10

Harvard Business Review

AUGUST 12, 2016

Most of these companies are private and don’t publish their balance sheets. Since its founding our company has achieved growth every year, and only once, in 2009, did we experience a drop in revenue, of one percent.

Balance Sheet 15

Balance Sheet B2B Recruitment Retention 15

Harvard Business Review

NOVEMBER 6, 2013

These factors have led to questions over the quality of banks’ balance sheets and whether many of the loans extended in recent years can actually be repaid, raising further doubts over the sustainability of the debt-fueled model. The central government must start to give more tax revenues to local governments.

Balance Sheet 8

Balance Sheet Government Revenue Sales 8

Harvard Business Review

NOVEMBER 7, 2013

Revenue and profits continued to decline. But like many companies whose physical products, distribution channels and retailing operations have suddenly gone digital, the value that remains will come not from the stores and inventory that once dominated Blockbuster’s balance sheet. million customers.

Balance Sheet 10

Balance Sheet Assets Digital Transformation Operations 10

Harvard Business Review

NOVEMBER 12, 2013

Scale is important, measured by factors like annual revenues and number of employees. When comparing the United States’ balance sheet to a household budget, as most politicians do, the government looks severely over-leveraged. If the government were a business, how would its credit rating look? Longevity is also important.

Balance Sheet 8

Balance Sheet Government Scaling Revenue 8

Harvard Business Review

MAY 28, 2018

By 2016, the rise of smart phones seemed to have made the company less relevant: Its revenues were at almost the same level they had been a full decade earlier. Nikon, the legendary Japanese camera maker, provides a textbook study in how smart managers can work with strategic investors to transform a struggling business.

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Balance Sheet Cash Flow Banking Fixed Costs 11

Harvard Business Review

JUNE 11, 2018

Take Google’s purchase of YouTube, now a multibillion-dollar revenue stream that’s fueling the disruption of cable, or Facebook buying Instagram, which solidified its social media dominance.

Balance Sheet 11

Balance Sheet Engineering Sales Sales 11

Harvard Business Review

SEPTEMBER 25, 2014

Turning information exchange into value and revenue involves changing the nature of information relationships as well as management’s abilities to act on that information. The ultimate goal is to treat information as a tangible flow rather than an intangible asset stuck on the balance sheet.

Balance Sheet 10

Balance Sheet Assets Diversity Operations 10