Money is incorrectly used by most businesses today
Money and Finance is not or should not be used to manage the organisation. Now most would disagree with this statement and I will explain why.
Why not
When Finance is used to manage the organisation, this becomes something like the carrot vs the stick, where it is used to manipulate the people as a type of punishment drive.
Business as a flow
This is the operating basis for most businesses in today’s world. It is difficult to sometimes see all the elements of an organisation as particles that each have their own production, and money is simply one of the particles or commodities and should be used as such for performance and outcome. The best model today is outcome based, what have we achieved in the department that helps the overall outcome of the business. This is, however sadly not used enough.
Individuation
Organisations today operate in silo’s as separate, individuated units and the whole is not seen, so people work for ‘activity’ or ‘work’ sake and their production is not seen in the scope of the entire organisation. Production (like in government) can be just for production’s sake and not deliver a valuable, usable product that can be sold and generate revenue. Departments are called ‘cost centres’, which in itself drives through the wrong message.
What are we measuring
How to put a monetary value or return on some departments, like Maintenance and even Finance, is difficult as there is no direct correlation to sales. This takes a shift in viewpoint, in how you see your production. What to look for, is the value added in any activity, and what product or sub-product is delivered, that eventually leads to the final product or service for the organisation.
The be all and end all
Money and Finance is often seen as some blanket thing that just encompasses a bulk item or one whole. This is pure identification without any differentiation. Let’s treat money likes beans. You look at number of beans in and measure the beans out. This would split Finance up, so that it can be grouped and divided. Finance should be used like irrigation channels built into the desert to water multiple fields, rather than just having one river, you have multiple streams.
Division before multiplication
Division should come before multiplication when it comes to money. Allocation and then consolidation. You can see money as threads of a tapestry that when woven together creates a masterpiece.
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