We can only manage what we know. When a company is first formed with one or a few individuals and a limited customer base and product offering, the owner knows pretty much everything that is going on. It’s all they think about – who is late paying? how much will the price increase in that raw material will affect margin? where is the bottle neck in production? which deliveries are late? etc etc.
But as a company grows so does the number of data points and the owner’s ability to internally process that increasing mass of data begins to decline until one day it happens: there is a mismatch. What the owner’s gut said is wrong. This mismatch is usually around how much cash is in the bank, which is bad enough. But the impact of that mismatch is much greater – it can cause the owner to start second guessing themselves and dive into the business rather than leading.
The only way out of this situation is through data management. Accurate data organized and tracked in an integrated fashion is the key.
Because we can only manage what we know…..