How should Directors look at Profit and Loss statements?
As a director, what questions should you ask of your balance sheets?
How we present financial reports and information can determine how a director can spot and respond to new opportunities. The key is to look at the trends, the outliers and ask yourself what is actually happening versus what you thought would happen? The 'why' becomes more important than the numbers themselves.
The following was presented by Steven Bowman in 2008.
There are many more techniques you can use to get the most out of reading your financial reports. If you have any strategies which have helped you look past just the numbers, we would like to hear them in the comments below.
Board performance is often undermined not by strategy, but by predictable director behaviours that derail discussion and decision making. These patterns are familiar in most boardrooms and require different interventions from the chair. This article outlines practical strategies and targeted questions to help boards stay focused, balanced and effective.