48 brilliant manager
1 The current ﬁnancial position
Using a maritime navigation analogy, your strategy can be con-
sidered as the way you plot the future course of your ship and
whether you reach your intended destination. Obviously you
cannot plot a course if you don’t know where your current loca-
Do you understand what your current ﬁnancial position really is?
If you have recently taken over a team then there is a high prob-
ability that you do not understand
the current position, and it is also
quite likely that the previous team
leader didn’t understand it either.
Even if you have been running your
team for a while it is possible that you do not have an adequate
understanding of your current situation.
You should consider, at the very least, the following issues.
What are all the revenue streams that generate the team’s
income? What do you know about the properties of those
revenue streams: are they likely to continue into the future,
are they likely to grow or decline, how predictable are they,
what margin do they generate, etc.?
What is your cost base? How is it structured? Which costs
are ﬁxed and which are variable? What services do you pay
for from your parent organisation? Are there hidden costs
which your organisation pays for that are not attributed to
helped you spot something that needs to be added to your SWOT
(Stengths, Weaknesses, Opportunities and Threats) analysis, and
that may need to be part of your strategy and/or action plan.
do you understand what
your current ﬁnancial
position really is?
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