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Three Methods To Help You Keep track of Business Finances

Strategy Driven

Look At Fixed Costs And Changing Ones. Every business has fixed costs and variable costs. What will cost you the same amount every time? Sit down and think about these differences right now, and write down any costs you can think of. Most of the time, these costs can overlap in some places.

Finance 101
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Health Systems Need to Completely Reassess How They Manage Costs

Harvard Business Review

They also do not represent sustainable, long-term change. The sheer sprawl of these outsourced services is bewildering, even at medium-size organizations: housekeeping, food services, materials management, IT, and clinical staffing, including temporary nursing and also physician coverage for the ER, ICU and hospitalists.

Cost 10
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The Challenges GM Is Facing, and the Reasoning Behind Its Plant Closures

Harvard Business Review

Capital-intensive factories have a high-fixed-cost, low-variable-cost operating model. If you greatly reduce the production volume, the cars that do come out have to absorb more of the fixed costs, and that eventually sends the product into a profitability death spiral. Given the shift in immediate U.S.

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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

The McKinsey Global Institute, in conjunction with FCLT Global, recently released research stating that long-term-oriented companies perform better than those that focus on short-term results. Getting the measurement right is central to providing convincing evidence on the debate over short-termism.

EPS 8
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Five Ways to Retain Employees Forever

Harvard Business Review

Clearly, for employees to safely make a long-term commitment to an organization, the employer will need to give them good reason to stay. Many workplace legends are built around the horrific things weary and stressed-out managers said or did. Tie a part of your employees' wages to the company's performance.

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How Companies Can Use Investors to Their Advantage

Harvard Business Review

Nikon, the legendary Japanese camera maker, provides a textbook study in how smart managers can work with strategic investors to transform a struggling business. It also called for streamlining headquarters and cutting executive management’s compensation. Heini Wehrle/BIA/Minden Pictures/Getty Images.

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Why HR Really Does Add Value

Harvard Business Review

Adding legitimacy to this skepticism are new technologies that enable automation of routine transactions, offshoring and shared service organizations that specialize in managing many tactical elements of HR. Within the first year of our effort net sales increased 27 percent while fixed costs were reduced by 40 percent.