Every business can be recognized as a separate organism that needs to function and react to the changes which happen in the outside world. In my presentation I give tools and explain what is important in order to stay ''fit'' and healthy as an organisation.

1. ANATOMY OF THE ORGANISATION

2. ANATOMY OF THE
ORGANISATION
• BRAIN DEPARTMENT
• HEART DEPARTMENT
• LUNGS DEPARTMENT
• KIDNEYS DEPARTMENT
• STOMACH DEPARTMENT
INCOME :
OXYGEN
NUTRITIONS
OUTCOME :
FITNESS
EFFICIENCY

3. PRACTICAL THINGS TO DO TO STAY FIT
• PREPARE A BUSINESS PLAN
FORECAST
• COMMUNICATE
• IMRPOVE EFFICIENCY
• ASESS CUSTOMER
PROFITABILITY
USE YOUR BRAIN TO CONTROLTHE HEART

4. WHY DO YOU NEED A FORECAST?
• HOW CAN YOU SPEND MONEY NOT KNOWING HOW MUCH YOU HAVE
IN YOUR POCKET ?
• HOW CAN YOU CONTROL YOUR BUSINESS?
A BUDGET FORECAT HELPS YOU WITH COST CONTROL
AND WITH ACHIVING YOUR FINANCIAL GOALS

5. WHY DO YOU NEED A CASH FLOW
FORECAST ?
HOW MUCH DO YOU HAVE TO SELL TO COVER YOUR FIXED COSTS ?
1. SEPARATE DIRECT COSTS FROM FIXED COSTS
2. CALCULATE MARGIN
3. ESTABLISH FIXED COSTS
4. PUMP IT …..set time frame at least 12 weeks
cash flow
BE AWARE HOW MUCH BLOOD YOUR HEART NEEDS
TO PUMP TO KEEP YOUR BODY ALIVE

6. IMPROVE THE EFFICIENCY OF YOUR
ORGANISATION
• STRUCTURE All work is a process and if it isn’t a process it is
random and you can’t be in control of it
• COMMUNICATION The management should support and not
manage the process. Operational managers have the knowledge
• COST CONTROL Eliminate waste from the process
• WASTE REMOVAL Find leaks within a process
EFFICIENCY IS THE OUTCOME = FITNESS LEVEL

7. EFFICIENCY OF THE PROCESS
K P I = KEY PERORMANCE INDICATORS
• Identify activities by mapping a process
• Set up a target for each activity - KPI
• KPIs help to monitor and improve a process
• Important is the benefit of the cost spent
• The up to date information is required to be
able to evaluate profitability of a process –
management accounts

8. Customer profitability

9. Customer profitability
Turnover GM GROSS PROFIT SELLING COSTS PROFIT Cumulative profit
Customer 1 1 20000 40% 8000 2000 6000 6000
2 19000 40% 7600 2000 5600 11600
3 18000 40% 7200 2000 5200 16800
4 17000 40% 6800 2000 4800 21600
5 16000 40% 6400 2000 4400 26000
6 15000 40% 6000 2000 4000 30000
7 14000 40% 5600 2000 3600 33600
8 13000 40% 5200 2000 3200 36800
9 12000 40% 4800 2000 2800 39600
10 10000 40% 4000 2000 2000 41600
11 8000 40% 3200 2000 1200 42800
12 6000 40% 2400 2000 400 43200
13 4000 40% 1600 2000 -400 42800
14 4500 40% 1800 2000 -200 42600
15 3000 40% 1200 2000 -800 41800
16 2500 40% 1000 2000 -1000 40800
17 2000 40% 800 2000 -1200 39600
18 1500 40% 600 2000 -1400 38200
19 200 40% 80 2000 -1920 36280

10. SELL EFFECTIVELY !
THREE SECRETS OF EFFECTIVE SALE

11. 1. KNOW YOUR PRODUCT
2. FIND OUT WHAT YOUR CUSTOMER
NEEDS
3. LET YOUR CUSTOMER CHOOSE WHAT
YOU WANT TO SELL HIM

12. I realise that a combination of my accountancy
and sales experience and training is unusual but
I have spent 10 years in each of these disciplines
…
Thank you
Catherine Machalinski ACMA

13. “Insanity: doing the same thing
over and over again and
expecting different results.”
Albert Einstein