The Balance Sheet - the Ultimate Scorecard

Could you imagine Russell Westbrook, the 2017 NBA MVP, playing without a scoreboard? No doubt he would play hard all the time, but he plays differently when he knows the score. We know that because he is constantly checking the scoreboard for the score, fouls, time remaining, time outs - the information he needs to manage his game.

The Balance Sheet is the ultimate scorecard for business. As a business coach, I’ve noticed that owners, like Westbrook, manage their businesses differently when they understand the score.

ADMINISTRATIONMartin HollandAugust 17, 2017Balance Sheet, Assets, Liabilities, Equity, Net Worth, Statement of Cash FlowsComment

Financial Reports Explained Without Numbers or Math

There is a saying often attributed to Edwards Deming that “We cannot manage what we do not measure.” Numbers are the measurement that make management possible. The corollary of the quote is: “If we don’t manage it, everything that happens to us – good or bad - is an accident.” We might survive by accident, but we cannot thrive, which means we cannot thrive without numbers.

Now don’t panic. As business owners, WE do not have to collect and compile numbers. We don’t even have to know how it’s done, but we do have to understand what numbers tell us.

ADMINISTRATIONMartin HollandAugust 3, 2017Financial Statements, Income Statement, Balance Sheet, Statement of Cash Flow, subjective. ObjectiveComment