Managing the drivers is important

Fast-growing companies need to implement a number of “key drivers”, to ensure that the company doesn’t get into financial difficulties because of “over enthusiasm”!

The key role is to discuss the importance of a “rhythm of meetings” within all segments of the company, so that the Directors/Advisers have an understanding that a regular sequence of meetings is being conducted by various groups in the company as often as daily, weekly and monthly. This will provide the team members awareness of their roles within the organisation.

The Directors/Advisers will be interested in the potential risks that could affect the company’s performance and will be asking questions about strategies that have been implemented to minimise those risks.

Another key area for continual review is the financial performance of the company on a monthly basis, with a review to the annual budget and an analysis of the variations both within the profit and loss account and the KPIs.

These items are the first segment of the “key drivers”, which will contribute to the success of a company. If these drivers are not implemented, it can lead to serious problems as the company commences to “scale up” its operations.

“Scaling up” can apply to a company with a current turnover of $1million aspiring to have a turnover of $3.5 million in 2 years’ time; or a company with a current turnover of $5million that envisages a turnover of $20million in a few years. It doesn’t matter what the current turnover is. As companies attempt to increase their turnover, many will start running into problems. These problems can be minimised if the “key drivers” have been appointed or implemented.

Would you like to find out more about how to improve the probability of success in your company? Contact Towers Business Development on 1800 232 088 or .