Five tips to reverse the enterprise leadership failure of disadvantage

Failure and success is often just a line between, a company can look permanent operation, CEO of business mentality. Excellent CEO ready to remind ourselves, the environment may deteriorate as a result of the "Advancement of progress" is not just a slogan.

The success of the enterprise for a while and do not represent sustainable prosperity, a company will fail, but also in a day. According to the United States in the latest issue of the policy and business "magazine, management consultant Alex (JayAlix) and Marshall (juan shall JayMar) help reverse the top 100 enterprises, cumulative years of experience disadvantage, they have raised from pain secondary to five lessons:

1, cash flow is the key

"There is no cash no credit" as law, but many managers or company flow without vigilance. For example, a medical equipment company stock price falls, the company's Board of Directors also assume that the company's physical health, cash flow is sufficient, but to assist the reconstruction of management consulting found that the firm cannot pay wages, and banks tightening, make it difficult to survive. This is not a special case.

To avoid this situation, the Board of Directors and management team should have two cash management tools:

A. a 13 week, to the actual basis of a detailed cash flow basis, instead of the expected profit and loss. Because this is not a general accounting system will provide content, so managers must do attitude adjustment.

B. longer-term cash forecasting, and must be able to display the main loan and capital expenditures. Of course, more important, to make the best use of these management tools.

2, the figure does not necessarily reveal hidden cash crisis

For example, statements of account receivable seems guaranteed cash flow, but these may not receive back the doubtful. Also note that the non-financial variables, because the number of the financial statements is man-made, and timeliness, cannot be an effective assessment criteria. Therefore, the company should carefully monitor quality and production line has become the soundness of the company.