One of these key analytical tools that is often underused or misunderstood in business is the financial statement. But, it is, in fact, the ultimate scorecard. Reportedly, 50% or more of mid- to senior managers do not have an appropriate understating of the integrated workings of a standard set of financial statements. Think about the significance of this finding—business failure can be directly linked to a company that doesn’t educate its employees on how to take an active role in maintaining financial health.
The CFO and his or her finance department are typically considered by the rest of the company as living on their own island. While they are regarded as having a specific and important expertise, even a dynamic CFO can be frustrated by not being able to get the rest of the company to understand and follow business fundamentals that bring forth good financial performance throughout the organization.
So where is the constraint? Is it in the process or content? The truth is, it is probably both.
