Scrooge Manning the Books --Dickeson
That's equity stuff—fiduciary misinformation. Hey, we're running a business here, man. We're talking dynamics—cash. We need to know what's happening, right now. Tell your accountant to go have a cuppa with Cratchitt while the computer program spits out the decision support reports.
Let's keep those reports clean. On the first one let's see the receipts, expenses and cash balances for the 13 weeks. Give us a simple line chart to dramatize the trend. Do the same on the second one for the accounts receivable and on the third one for raw paper inventory. By 8:05 a.m. Monday we know our liquidity position—where it's been, and where it's heading. Liquidity is our key to being in business tomorrow...to being able to take advantage of opportunities...to our ability to grab that 36 percent interest on 2/10/n30 purchase discounts...to make the down payment on a new fork lift. As managers, our task is to focus first on working capital—make the payrolls, pay the bills, buy the materials.
No Extra Details, Please
Yes, we may need some detail, so mouse over to a number, double click it, and drill down to the level where the devil lives in details. But, don't bother us with details if we don't ask for them.
You can remind us at 8:06 a.m. on Monday of our weekly Break-Even Bogey so we'll keep our eyes on expenses and collections. At 8:07 a.m., John has a minute to tell us what he's going to do, collecting receivables this week and to predict where they'll be next Monday. At 8:08, Fred has his minute to tell everyone what he'll do this week to bring inventories closer to the 12 turns goal.
What we're really saying is that it's time to get down to basics. It's 2002, and we have computers and shop floor data collection. We can do that Triple M—Monday Morning Management—routine. It can be current, simple, real and digestible if we keep it all to little, seven-day bites. Ask Sam Palmisano at IBM. Bob Cratchitt at Scrooge Graphics is fiction.