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Dashboards: Employees Work Better When they Know the Score!

Dashboards: Employees Work Better When they Know the Score!. Coach’s vs. Player’s Dashboards. Good coaches know all their team’s stats and study them voraciously. Players really only need to know whether they are winning or losing, where the ball is at, and how much time is left in the game.

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Dashboards: Employees Work Better When they Know the Score!

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  1. Dashboards: Employees Work BetterWhen they Know the Score!

  2. Coach’s vs. Player’s Dashboards • Good coaches know all their team’s stats and study them voraciously. • Players really only need to know whether they are winning or losing, where the ball is at, and how much time is left in the game.

  3. Trademarks of Effective Players’ Dashboards • Set Clear, Focused Goals “Goals cannot sound noble but vague. Targets cannot be so blurry they can’t be hit. Your direction has to be so vivid that if you randomly woke one of your employees in the middle of the night and asked him, ‘Where are we going?’ he could still answer in a half-asleep stuper” -Jack Welch GE CEO

  4. Set Clear, Focused Goals “Improving our ability to multitask actually hampers our ability to think deeply and creatively . . . The more you multitask . . the less deliberative you become; the less you’re able to think and reason out a problem” -Jordan Grafman National Institute of Neurological Disorders

  5. Set Clear, Focused Goals “We are the most focused company that I know or have read of or have any knowledge of. We say no to good ideas every day. We say no to great ideas in order to keep the amount of things we focus on very small in number so that we can put enormous energy behind the ones we do choose.” -Tim Cook Apple CEO “I’m as proud of what we don’t do as what we do” -Steve Jobs

  6. Trademarks of Effective Players’ Dashboards 2. Engagement: Leaders Can Veto, But Not Dictate Team Goals • Leaders at each level decide which one or two focuses for their teams will most impact the company’s goal(s). • Individual team’s focuses must “win the war”

  7. Trademarks of Effective Player’s Dashboards 3. Goals Have Clear Finish Lines From X to Y by When? “Land a man on the moon and return him safely to earth before this decade is out . . . That challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win” John F. Kennedy President of the United States

  8. Clear Finish Lines:Everyone Knows What Success Looks Like

  9. Track The Lead Measures

  10. Keys to Effective Players’ Scoreboards • Simple • Highly visible to the team • Shows lag and lead measures • Everyone can immediately tell if they are winning

  11. Keep a Scoreboard “People are most satisfied with their jobs (and therefore most motivated) when those jobs give them the opportunity to experience achievement” Frederick Herzberg Published in Harvard Business Review: “One More Time: How Do You Motivate Employees?”

  12. Weekly Accountability Sessions • Review commitments that were made last week • Use the dashboard to celebrate success and learn from failures • Clear obstacles and make new commitments

  13. Dashboards Employees Work Better When They Know The Score “When we deal in generalities, we shall never succeed. When we deal in specifics, we shall rarely have a failure. When performance is measured, performance is improved. When performance is measured and reported, the rate of performance accelerates”

  14. Please don’t hesitate Questions

  15. Forecasting & Managing Cash Why Cash is King and How to Keep it That Way

  16. Why do we forecast & manage cash?

  17. Paying Bills with? Gross Profit Sales less Costs of Sales EBITDA Earnings Before Interest Taxes, Depreciation & Amortization Net Income Gross Profit less Operating Expenses CASH IS KING

  18. Month 1 • Month 2 CLIENT EXAMPLEProfitably growing yourself bankrupt Business Model HIGHLY PROFITABLE 2 Month FINANCIALS Gross Margin 50%+ Expenses 5% Client Terms Sales 100 200 COS (50) (100) Expenses (5) (10) Income 45 90 Cash (55) (165) &

  19. Month 1 • Month 2 WALMART EXAMPLESkinny Margins – Strong Cash Flow Business Model MARGINALLY PROFITABLE – DVDS – 500,000 2 Month FINANCIALS Gross Margin 25% Expenses 20% Client Terms Vendor Terms Sales 100 200 COS (75) (100) Expenses (20) (10) Income 5 90 Cash 5 15 &

  20. Leanest Period Week/Month Cash ForecastingShort Term vs Long Term • Long Term • Think: • Basketball Coach Game Plan • Watch film • Study w staff • Talk to team • Set game plan • 13 Week • Think: • In Game Adjustments • Changing Defense • Injury • Time remaining • Small lead “Plans are Useless, but planning is essential” Dwight D Eisenhower

  21. LONG TERM Cash Forecast Game Planning Most importantly LACK OF PLANNING Most companies forecast LT profitability but not working capital and cash WHY DO IT? EARLY WARNING SYSTEM CAPACITY PLANNING INVESTOR REQUIREMENT

  22. SHORT TERM Cash Forecast In Game Planning & Adjusting Most importantly LACK OF PLANNING Even fewer have a proper ST cash forecast WHY DO IT? EARLY WARNING SYSTEM SPOTTING BAD TRENDS CONFIDENCE INVESTOR REQUIREMENT

  23. 13 Week Cash Flow ForecastCrucial Elements A powerful management tool, the 13-Week Cash Flow projection, refreshed weekly, should be used by all companies, both healthy and distressed to assist with managing and anticipating short-term liquidity needs. • 13 Weeks • Maintains accuracy, but long enough to react • Weekly • Avoids “intra-month” surprises • Beginning vs Ending Cash • Reconciles weekly • Liquidity • tracks available liquidity weekly • Major Categories • naturally grouped, summarized • Specific Unusual items • Variance Analysis • sufficient explanations • Weekly Accountability • management tool • Graph • Simple cash & liquidity trending QR code

  24. CASH FLOW FORMULAsimple version For any given period: +/- +/- +/- Inc Inv AR AP Income D in Accounts Payable D in Accounts Receivable D In Inventory Increases to AR means you didn’t collect = less cash Decreases to AP means you paid vendors = less cash Sales less Costs Additions to inventory = less cash

  25. Managing Cashkey items to focus on • Categorize – Safety, Replenishment, Excess • Don’t treat all SKUs the same • Set target fill rate vs customer satisfaction • Avoid “life-time” buys • Increase Revenue + Decrease Costs Accounts Receivable Cash Inventory Income Accounts Payable • Invoice properly • Set proper customer expectations • Incentives for cash collection – measure & reward • Focus on dispute resolution • Obtain terms…and with early pay discounts • Pay on time

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