Managers need to know how to interpret the company's numbers. When there are failures in this process, the company can suffer major losses .
Keep in mind that data interpretation involves a view of the past, based on historical data relating to the economy and the company . From this, it is possible to make a projection for the future. In this case, the natural tendency is for the data to be correct.
However, this can only be achieved when information about the company and the sector is shared. If people work without a goal, in total secrecy, mistakes are the most common situation.
For example : you work in the purchasing department of a clothing store, but you don't detect problems in the economy that will compromise your sales. You don't notice problems in the projection and make poland whatsapp data the wrong decision to buy more products.
Your company's data initially indicates an increase in sales. However, the economy is in crisis, which means customers are buying less. What is the result?
Items get stuck in inventory. In addition, clothes go out of fashion and become harder to sell. This represents a high cost and, even if you sell the items in a “sale”, you lose your profit margin.
Therefore, it is essential to know how to draw up different scenarios and monitor the progress of the results. If you notice that the process is going in the wrong direction, you can protect yourself and adjust the route, that is, project future problems.
As a result, the organization tends to make fewer wrong decisions and management can focus more on strategic aspects.
The importance of knowing the area's numbers for negotiating with superiors
The goal of organizations and management is to generate profitability . Managers must pay attention to financial figures and analyze metrics relevant to the business to identify the need for adjustments.
A simple metric is to check how much you are earning for what you are investing , that is, the return of the area in relation to the amount invested. This result will indicate whether the sector is successful or needs to improve.
This metric can also be divided by the number of employees to check what each one did and arrive at another piece of information: the profitability of each employee.
Understand that data is cold, that is, it does not always represent an absolute truth. However, it is a way of observing scenarios and checking who is productive.
It is with this well-interpreted information that you can negotiate with superiors and identify what can be done to improve the area, the revenue result, etc. Some tactics, for example, are trying to make a new agreement with the supplier, lower the rental price, re-discuss something that is being overspent by the organization, etc.
Keep in mind that all of these goals will only be achieved with engaged and motivated people who know the results that need to be achieved and understand the importance of the department's profitability for the company.
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Do you understand better how to evaluate your department's financial results? Learn more about the subject by reading about financial planning and the 6 serious mistakes when cutting costs.