The Power Of Visualization - How To Take Your Organization To The Next Level
Tell me what you think:
In which organization would you prefer to be?
Which organization would you prefer to lead?
In which organization's management team would you prefer to act?
which one is stronger?
Sitting in a meeting and listening to that:
"Since the beginning of the year our revenue is growing in an average of 2% month over month. March was a very strong month from a revenue perspective, where we had a big revenue growth of around 20% comparing to February, but in April we suffered from a decline in the revenue to a level even lower than the revenue we had in February, and since then we are in a kind of stagnation with regards to our revenues. Except August, where we performed pretty well comparing to the last 4 months. On the other hand, our operating expenses growth is stable in an average of 5% month over month, with no correlation to the revenue side, and with no seasonality impact. Taking all this into consideration, the result is that our gross margin is declining month over month, and is even negative in the current month."
This of course leads to a discussion with questions raised such as "What is the revenue in March?", "What is the gross margin in each month?", "How much we spent in August?"… etc.
You can expect of course that there will be a lot of "noises" from the crowd about these statements, where the VP sales would disagree with the numbers and the way they were calculated and presented, the VP marketing would disagree with the expenses growth mentioned, and the CEO will be confused and not satisfied neither with the numbers mentioned nor with the numbers accuracy.
A whole discussion lead to nothing. No results, no actions, no clarity, no agreement between the participants, and not a word about strategy. Low level numbers discussion.
Not to mention questions raised about drilling into the data, such as "What are the numbers for my own segment?", "Specific Product?", "Expenses Split?"… this will lead to separate meetings, with a separate preparation and a separate set of numbers…
Sitting in a meeting, with the graph below presented (with the abilities to drill and slice in every possible way - live and dynamic analysis):
Looking at the graph and discussing the STRATEGY of the organization, and the tactic ACTIVITIES each one should take in order to be more SUCCESSFUL. Discuss about the reasons for the big growth in March, and what we can do to grow again in the same levels. Discussing what we can do in order to decrease OPEX, and keep it in a lower level than revenue, and in correlation with the revenue. Discussing about the short-term activities to stop the negative gross Margin and the long-term activities to achieve a strong positive Gross Margin.
Strategic and impactful discussion based on the numbers, instead of numbers discussion lead to nowhere.
This discussion leads to ACTION PLAN BASED ON THE ORGANIZATION'S DATA, and leads to action for improvements. The discussion is taken to another level, much higher level. It makes your organization much more professional, and upgrade the abilities and the discussion level of all segments - Finance, Marketing, Sales, HR, Management Team, IT.
As we always say in MRBI, the data is not the goal, it is a means to get insights and take the right decisions. The discussions should be based on the data, but the data should not be the issue. The issue is the INSIGHTS we produce from looking on the data.
If you want to take advantage of your data, to be able to provide insights from your data, to have the right data to enable you to take the right decisions, to have the right analyses and views of the data, to have the latest data on real time, to control your business in a better way and more efficiently, then you want to work with us – www.mrbi.biz
Please visit our website and learn more about MRBI. We will work with you on a tailor-made solution for your business and assist with how your organization manage data, and how decisions are taken.
By the way, with our alert system, you would not get even close to the situation presented above, as you would be alerted in advanced and would be able to prevent any losses, revenue decrease, OPEX increase or any other KPI important for your organization.
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