By Gary Cokins, Founder and CEO: Analytics-Based Performance Management LLC
A paradox which continues to puzzle me is how chief financial officers (CFOs) and controllers can be aware that their managerial accounting data is flawed and misleading, yet not take action to do anything about it.
Now, I’m not referring to the financial accounting data used for external reporting; that information passes strict audits. I’m referring to the managerial accounting used internally for analysis and decisions.
Randall Bolten , longtime Silicon Valley CFO, author of "Painting with Numbers: Presenting Financials and Other Numbers So People Will Understand You” and adjunct professor at U.C. Berkeley Extension
In recent posts we’ve seen how tiny changes in the way we present numbers can have a huge impact on how well the information is understood. In this post, we look instead at how those little things can affect how your integrity or your ethics might be perceived.
For our example, consider a slide from an investor presentation I found online (click here for the original document). Just for the record, the company (Constant Contact – Nasdaq: CTCT) looks at first glance like a perfectly fine company; I’m only commenting on how they present some of their information.
By James Myers, Global Finance Executive and FInance Transformation Consultant
Never before has an FP&A professional had so much opportunity to change the course of history. Uncertainty is becoming the norm and companies are struggling to be nimble or have become too dependent on the past to create the future and find it difficult to adapt to change. While “disruption”, the latest buzz word, we are seeing the more nimble companies winning, but by definition there also have to be losers. How does your company navigate these uncertain times?
"You can't improve what you don't measure" - Lord Kelvin
Key Performance Indicators (KPIs) are metrics that represent how various drivers of the business are performing. These drivers are often both financial and operational in nature. And while there is no one-size-fits-all when it comes to choosing the "right" metrics for your business it is critical that the data used be consistent and accurate.
The Superforecasters were assessed according to Brier scores. A certain mindset combined with a resolute feedback environment led to extraordinary results. Philip Tetlock, author of "Superforecasting: The Art and Science of Prediction", came up with 11 methodical commandments that can be followed to attain supreme forecasting skills.