A study showed that organisations with high bonus payouts performed much better financially than those who did not pay high bonuses. This is why incentives can be seen as a financial tool to drive better performance.
John Stretch
A Chartered Accountant with a Masters’ degree in financial modelling, John has over 30 years’ experience in consulting to businesses and banks in rolling forecasts, analytics, business plans, budgeting, performance management and reporting.
John has been a regular visiting lecturer at the Graduate Schools of Business of the University of the Witwatersrand and the University of Cape Town, and ran workshops for many years on the Continuing Professional Education programs of the Institutes of Chartered Accountants in South Africa, Namibia, Malawi and Zimbabwe.
He is a prolific author whose material has been published by Microsoft, CFO magazine, professional institutes, and business school journals. His book “Managing with rolling forecasts” has sold in the United States, Australia, Europe, the Middle East and China.
Author's Articles
Developing predictive models, forecasts and scenarios to assess risk and assist decision making is one of a finance department’s most important activities. If finance managers neglect this activity, the company may encounter serious problems.
Two years ago, the company moved away from our annual budget and monthly variance reports, and adopted quarterly rolling forecasts supported by key performance indicators and scorecards. Is this approach useful to a line manager?
One day in November, a worried operations manager for a transport company was preparing for a meeting with the group’s financial director. He’d been ordered to explain the overspending on his region’s fuel account for the first 10 months of the financial year. The variance was huge and the MD had hit the roof! There were many reasons for the variance.