Beneath Momentum Bedrock or Shifting Sand
Financial results lag the causal reality in a business by anything between 12 to 24 months, the general rule being the larger the company the longer the lag. Mostly it takes many months before the current actions of people are reflected in the financial results, and when they are and changes are introduced, an equally long time for the changes to be reflected in future financial results. Without an early warning signal of impending problems or the certain confirmation that all is well, this could be a two to three year cycle at the cost of much lost ground and profitability.
As vital as financial results are for their intended use in business, they always produce a historical financial picture of what has happened (even six months is a long time in some businesses) but are no value in understanding the strength or weakness of the profit drivers (the organisation's entrepreneurial drive and ability) that produced the results.
The Deception of Momentum
Momentum is every business leader's objective, and when things are rolling along well it is tempting to think it could never change. Momentum does that for us. It can lull us into thinking that we have finally 'got it right' and that all is well while at the same time hiding a dangerous turn for the worst that will not be identified before it has done the damage.
From bitter experience however, leaders know that a business is never static but always growing or shrinking, so what they really need is an early warning measure of whether their momentum is sustainable or not, an understanding of why, and the tools to either correct problems early or reinforce its power.
Bedrock
When the people who work in your business are competitively engaged and linked to its risks and rewards they will really care, not just about their job and pay cheque, but about your and the company's future too, and because they are closest to the coal face they become your ears and eyes of what is really happening on the ground long before it is reflected in your financial results and their pay cheques.
Shifting Sand
When people don't care deeply enough and you are not aware of how this is impacting customers and internal effectiveness, your strategy and profitability are at serious risk without you knowing.
Insight into Tomorrow's Results
Prodex measure 1. - measures your organisation's internal profit drivers (entrepreneurial drive and ability) against a benchmark that determines the degree to which your people are creating or inhibiting profit growth long before it is reflected in your financial results. It reveals your current reality against what is possible to achieve with an elite standard of performance.
Prodex measure 2. - (six months later) provides a clear indicator of how momentum is building and why.
Prodex measure 3. - (six months later) confirms the trend.
