Step 1: Current Reality — Identifying and Assessing Your Present Performance Management System

Introducing the 12-Step Path to Integral Operations Finance Accounting (see graphic at right).

Steps 1.2 through 4 follow the three-bottom-line-performance picture with three other system elements.

Step 1.2 assesses management’s capacity to set goals, its financial literacy, plus use of financial and operating indicators.
Step 1.3 is the "cultural resilience" aspect. We have tested the The Lebow Company Values Tension Index, finding that it does, in fact, generate a single number that measures "cultural congruence" as a single number that can be used for audit-level decisions.
Step 1.4 is to decide that the transaction system has to become mapped. If there isn’t a map, you will create one. (Stay tuned for Step 10 for support on this.)

This performance-measures assessment allows anyone to quickly map their company's bottom lines, key drivers and key performance indicators and then examine how thoroughly they are on top of what is happening in the system. This one-page tool helps anyone begin to grapple with the facts of their finances.

The software tools that use the input of financial statement data to visualize the financial picture can be found at www.financialdashboard.com and www.financialscoreboard.com. Remember, a picture's worth a thousand numbers. If you link from this newsletter, you will receive a 10 percent credit toward purchase.

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