An organization is like a balancing scale. You simply have to make sure that everything is well-balanced so as not to favor one side. Revenue and expense is the best factors that can illustrate this. It is really more of a guide and a sign to which most organizations can make a full assessment of how a company really operates and measure its activities and determine the efficiency and effectiveness of the entire company.
Imagine touching the balancing scale, even for just a slight touch and you will see movement. This typifies that an organization all the way down to the liaison personnel play a vital role in the operations. One wrong move will toggle the whole organization and may even become the reason for an organization’s downfall. Tipping it on the other direction may symbolize further investments, additional cash flow, or increase in market demand for a product. These two factors are some of the more pinpointed factors, most of the time which allows a company to go toward a direction they are unaware of or intend to go to.
Balancing operations, marketing, sales, administration, and finance looks easier on paper than in actual practice. Joining heads together is no joke. It entails a lot of negotiation, brainstorming and deliberation for each key department to complement one another. The best person to handle and mediate such cases is the person who knows the work flow of each department. Probably that is why they call them General Managers, since they are expected to know and motivate people assigned to these areas.
Reference Articles:
Creating a Profit and Loss Statement
Originally posted on July 14, 2006 @ 2:42 am