All tagged business

The business finance conversation often revolves around accounting. Results are presented primarily in financial terms and standardized by accounting rules. Operational results (as opposed to legal) are primarily derived through accounting bookings with some further detailing or inclusion/exclusion of defined elements. And operational result measurement is intended to give the management a fact-based view on how the business is performing.

Now, let's take a step back and go through why accounting rules exist.

Say you want to achieve a certain output, like controlling your weight, for example. Then you would like to know what kind of actions and inputs are needed to get there. The output can be either a target, like losing 10 kg, could be controlling variability, like keeping your weight variation within certain boundaries, or maybe trying to understand where your weight will be given future changes in your environment. To make things easy, let's assume you want to lose 10 kg.

A company goes through some good times and some bad times. And sometimes it even has to march through the Death Valley (expression from Andy Grove). 

Cost cutting is something which usually comes up during the bad times and is seen as a necessary evil the company has to go through. It's a fuzzy term for a lot of different things generally perceived as a negative thing. So let's get to the bottom of it.

One thing that I keep in the back of my head is how could I reduce the work I’m doing today. It sounds a bit strange, but to a large extent my work is there because the organisation has a need to fulfill. So, I wonder how could I solve that need to the point where I am not needed anymore.

Here is an example that came to my mind while I was on a group trip last week. We were six people and we didn’t have much of a plan, so we had to figure out things on the way. Things like: Where are we going today? What do we eat? When to wake up? Who takes the bill? Who goes to the store? And so on...

It was one year after grad school when I got an assignment as a business controller. The company was starting a major project and I was going to witness how a business case comes alive. When I practiced business cases in school, the story always ended once the investment decision was made. I never knew what comes afterwards, but now I was about to find out.

So, I got a job description to help me through...