Tom Spencer
OCTOBER 13, 2023
In this article, we will explore the importance of profitability ratios and valuation metrics that are crucial when analyzing banks. There are seven key profitability ratios and two valuation metrics that it is important to understand. It is not a useful metric for comparing different business lines.
Markovitz Consulting
AUGUST 27, 2019
Michael Harris and Bill Tayler wrote a terrific article in the new Harvard Business Review on “metrics surrogation”—the tendency for people to mentally replace their business strategy with metrics. Although these metrics are supposed to reflect the company’s progress towards its goals, the focus on metrics can destroy an organization.
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Tom Spencer
SEPTEMBER 10, 2021
In business, productivity and performance is often measured using financial ratios that can be used to compare firms across the industry. All industries use numbers and metrics to describe performance, measure trends, and allocate status. Using the metrics for decision making. Company goals – Is the change in the metric planned?
Kates Kesler
JUNE 29, 2020
Simple financial measures, like P&Ls, are an effective way to visibly drive leader accountability, yet they frequently do not match the complexity of today’s strategies. Metrics serve as a powerful motivator and unfortunately, are often perfectly designed to drive sub-optimal results.
CaseInterview.com
APRIL 17, 2020
Second, I ask for specific metrics from their business. My job when doing a patient assessment is to capture the initial data set, track those metrics over time, and figure out the story the data is telling me. As I started to get better at understanding, recognizing, and interpreting these key metrics, I had an epiphany.
Johanna Rothman
DECEMBER 6, 2023
Ignorance of the flow metrics. A Short Rant Against Cost Accounting Every organization must report their financials using cost accounting. Luckily, the flow metrics help everyone see where the teams have value and where there is just cost. Here are the four flow metrics: WIP: the current number of work items in progress.
Tom Spencer
MAY 18, 2015
Tom: Do you think that short term financial metrics are part of the problem in developing long term strategy? One of the ideas that I’ve been thinking about recently is that financial metrics are basically designed to evaluate how much you are getting out of a company, your cash flow take from the company.
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