General_Business_Issues

General_Business_Issues - ALGSoftwareKeyVerticals General...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ALG Software Key Verticals General Business Issues Generic Issues There are a number of performance management issues that span all sectors including  government and not for profit.   If anything these are more important than sector specific  issues and you should use these as the foundation of your discussions with any prospect; the  sector specific issues simply forming a second tier with its own sector specific terminology.   You obviously need to talk through both these generic performance management issues and  the sector specific issues, but if you work at becoming thoroughly conversant with these  generic issues that ALG can address, you will be on the right track.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
ALG Software Key Verticals Issue  Delivering consistently on the earnings promised to the stock market  and investors Description Market analysts don’t like surprises of any kind. They prefer companies to  achieve the earnings they led investors to expect - or provide ample warning  and valid reasons why they will not be achieved.  If companies give a profits  warning, analysts usually mark their stock down and their share prices falls.  If they end up giving another profit warning their share price usually  collapses further.  This damages both investors and senior executives who  end up foregoing their stock options and bonuses.  Solution The only way to get better visibility into future earnings is by forecasting  more frequently and involving more people across the business so that any  internal changes that are likely to impact future profitability can be assessed  and accommodated into the forecast.  For instance, what is the impact of  market growth stalling? Losing market share? Losing a key customer(s)? An  improvement in operational productivity? Or the cost of fuel continuing to  rise? Or indeed anything else that could possibly impact future earnings. Like navigating across an ocean, achieving an earnings target is rarely  straightforward. You set a course, but inevitably something will cause you to  drift off it.  It might be the wind or the tides - or it might be that your engine  can only run at half power.  You constantly need to reassess your position,  take account of the latest weather forecasts and your own capability and get  yourself back on course, re-forecasting a new time of arrival at your  destination.  What happens if the wind changes quarter and helps you  along? What happens if you drop anchor and repair the engine so it’s  capable of delivering full power?   Commercial life is no different.  The only way to get a more reliable forecast  of year-end earnings is to re-forecast more frequently, and to constantly 
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 8

General_Business_Issues - ALGSoftwareKeyVerticals General...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online