Bottom Line Management / Edition 1

Bottom Line Management / Edition 1

by Gary Fields
     
 

ISBN-10: 3540714464

ISBN-13: 9783540714460

Pub. Date: 12/23/2008

Publisher: Springer Berlin Heidelberg

Bottom Line Management presents a new approach to management. It will help you if you are a senior manager in an organization and have a seat at the table where key decisions are made. It will help you be a valued employee recognized as doing the good work of the organization.

What makes you valuable to your organization? You’re valuable if the organization

Overview

Bottom Line Management presents a new approach to management. It will help you if you are a senior manager in an organization and have a seat at the table where key decisions are made. It will help you be a valued employee recognized as doing the good work of the organization.

What makes you valuable to your organization? You’re valuable if the organization would lose out if it weren’t paying you for your input. The head would have significantly more to do if you weren’t there. Without you, less would be produced. In your absence, poorer decisions would be made.

Bottom Line Management gives you essential tools so that you can truly be valuable to your organization. In a very practical way it gives examples of successful rules how to maximize your contribution to the Bottom Line, and how to avoid popular mistakes in managerial dicision making.

But in order for you to be valuable, your input must truly be valuable. Your input cannot be valuable if you do not know what the organization is trying to achieve and what strategy the head of the organization and the other leaders have adopted to try to achieve it, or if you cannot contribute to the making of good, sound, purposeful decisions.

Bottom Line Management will help you understand the organization’s bottom line and contribute to it.

Bottom Line Management gives you essential tools so that you can truly be valuable to your organization.

Product Details

ISBN-13:
9783540714460
Publisher:
Springer Berlin Heidelberg
Publication date:
12/23/2008
Edition description:
2009
Pages:
106
Product dimensions:
5.39(w) x 8.07(h) x 0.02(d)

Table of Contents

Chapter 1 Bottom Line Management: An Introduction 1

Why You Should Read This Book 1

Helping the Person in Charge Improve the Bottom Line 1

What the Bottom Line Is 2

It's Costly Not to Know What the Bottom Line Is 4

One Company's Story 6

Bottom Line Decision-Making 7

In Summary 8

Chapter 2 Purposeful Behavior: What Are We Working Toward? 11

Mission 11

How the Bottom Line Is Different from Mission, Vision, and Values 12

How a Clearly-Defined Bottom Line Helps You Manage Yourself and Others 14

Lack of Clarity Is Endemic 15

Cultural and Ethical Constraints 18

In Summary 20

Chapter 3 Five Types of Organizational Bottom Lines 23

Category 1 Profit-Seeking Companies 23

Category 2 Highly-Focused Not-for-Profits 25

Category 3 Dominant-Objective Organizations 27

Category 4 Double (or Multiple) Bottom Line Organizations 29

Category 5 "Can't Tell" Organizations 31

In Summary 32

Chapter 4 Benefits, Costs, Profits, and the Good Work of the Organization 35

Understanding the Organization's Scorecard 35

Profit and Loss, Revenue and Cost 37

Profit-Focused Decision-Making in Companies 40

Benefits and Costs in Not-for-Profits 41

What if Benefits and Costs are Hard to Quantify? 43

In Summary 45

Chapter 5 Making Decisions to Maximize the Bottom Line 49

When Do You Maximize and When Do You Optimize? 50

A First Case: The Advertising Agency Problem 51

The Most Common Decision 52

The Right Decision 52

Using Spreadsheets to Help You Maximize 54

Other Incorrect Answers 56

Thinking Inside and Outside the Box 57

Using Shorthand Rules Can Get You in Trouble 58

A Variant in a Not-for-Profit Setting 59

In Summary 60

Chapter 6 ThreeGood Decision Rules and Many, Many Bad Ones 61

A Second Case: The Store Detectives Case 62

Correct and Incorrect Answers in the Store Detectives Case 64

Two Serious Mistakes: Considering Only Benefits or Only Costs 65

Other Serious Mistakes: Using the Wrong Ratios 66

Comparing the Decision Rules 67

Distinguishing the Good Decision Rules from the Bad Ones 69

A Third Case: Developing a New Product 72

In Summary 74

Chapter 7 Making Investment Decisions: Rate of Return and Net Present Value 77

Two Methods for Calculating ROI: Rate of Return and Net Present Value 78

Using Rate of Return and Net Present Value to Make Up/Down Decisions 80

Using Rate of Return and Net Present Value to Choose Among Projects 82

A Fourth Case: Basic Training or Deluxe Training? 82

Decisions Based on Rate of Return and Net Present Value 83

Rate of Return, Net Present Value, and the Bottom Line 84

A Variant of the Fourth Case: A Fixed Training Budget 85

In Summary 87

Appendix to Chapter Seven: Rate of Return and Net Present Value in Real Time 87

Chapter 8 Making Interdependent Decisions: People, Process, and Technology 91

The Interdependence of Product Market, Capital Market, and Labor Market Decisions 91

A Fifth Case: People, Process, and Technology in Custom Apparel Production 92

Some Possible Answers 93

Getting the Correct Answer 94

What's Wrong with Some of the Answers Given 97

Analyzing the Correct Decision 99

In Summary 101

Chapter 9 Bottom Line Management: An Executive Summary 103

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