Business Intelligence: Senior Level


Table 7-1 summarizes suggested external Senior-level business intelligence that you can gather, along with places for you to look for this information.

Table 7-1. External Senior-level business intelligence checklist.
‚  

Source

Where to Look

Organization Information

Annual report

Press releases

Mission statements

New product releases

The organization ‚ s Website, or www.forbes.com/2002/1/o7 /privateland.html if a large private company, or Hoover ‚ s business information services at www.hoovers.com

Investor/External Financial Information

Annual SEC report (10K)

Quarterly SEC reports (10Q reports )

SEC material changes or events report (8K reports)

www.sec.gov

Industry and Competitor Information

Industry statistics

Competitor information

Market share distribution

Trends, especially best-in-class

New developments in markets, legal issues, R&D, or customer sentiment

Industry publications , industry Websites, stockbroker, investors ‚ Websites, business information sites, competitors ‚ Websites

Because understanding profit, position, cash, and the balance among them is fundamental to creating financial value chains, the first items of business intelligence that you ‚ ll need to obtain are the company ‚ s annual report, quarterly financial statements, and any reports of material changes or events required by the SEC. These statements are known as 10Ks, 10Qs, and 8Ks.

Where to Look

For annual reports, check your company or your target company ‚ s Website. Most companies have an investor relations page that will allow you to download their annual report free. If the report is not available online, you will usually find contact information for the company ‚ s investor relations department where you can request a copy of the report to be sent to you. Some companies will also post copies of their SEC filings on their Websites. If you cannot find this information, try the SEC at www.sec.gov. If you are a consultant and looking for financial information, you might even invest in a share of stock so that you will regularly receive financial news from them. You can find some information on the 500 top private companies at www.forbes.com. Keep in mind that private companies are not required to publish financial information; therefore, the information you will find at this site will be more general in nature. For more in-depth information, check Hoover ‚ s at www.hoovers.com. Some of Hoover ‚ s reports are not free, but paying for data may be a very economical way for you to get valuable information fast.

Other Information

While you are on the company ‚ s Website, don ‚ t forget to look for other information such as press releases, mission statements, and new product releases.

Press releases may alert you to major new deals or ventures that will imply changes in revenues , long- term investments, or market share. Mission statements can give you an idea of what the company will emphasize in the way they do business, such as ‚“highest quality in the industry. ‚½ Such statements can indicate their approach to costs or services. Wal-Mart is a huge U.S. company. As an example, Wal-Mart is known for its devotion to low prices. To maintain such low prices, Wal-Mart must employ great diligence in cost control and purchasing negotiations. Other things to look for may be new products, which can imply major cost investments or a temporary dip in revenue from other product lines that could affect cash flow.

Useful Facts About the Industry

In addition to information that you can get directly about the company itself, you also need to obtain information about the industry that the company is in. Your Senior management closely watches industry statistics, competitor information, market-share distribution, trends, and new developments that could favorably or adversely affect your target organization.

Important ‚  

Senior managers make financial adjustments to meet the demands of their industry. As a WLP professional, you ‚ ll be ahead of the game if you anticipate these moves.

Where to Find the Facts

Even though we live in a world that Googles for almost any bit of information, the public library is still a good place to find business intelligence. You can find industry magazines listed in Bacon ‚ s Magazine Directory: Magazines and Newsletters. The SRDS Business Publication Advertising Source provides advice to its database subscribers on industry publications in particular industries.

Important ‚  

Many articles in business publications report on trends, organizations, and business practices that are considered best in class. What is considered best in class today will be expected of all businesses in that industry within three years in order to maintain a competitive position. Senior managers surely will be focused on ensuring that best-in-class changes occur within their organization within a three- to five-year period.

Other Sources

Security analysts at investing firms create a wealth of reports on a wide variety of industries. You might be able to get access to some of these reports through a stockbroker. Of course, Websites are always available. Four excellent information sources are Dun & Bradstreet at www.dnb.com, the Brandow Company at www.bizminer.com, Hoover ‚ s Online (www.hoovers.com), and Zacks at www.zacks.com.

Internal Fact Finding

Some details about what executives are measured on may be widely communicated. Others may be very confidential. Table 7-2 summarizes suggested internal Senior-level business intelligence that you can gather, along with places where you can look for this information.

Table 7-2. Internal Senior-level business intelligence checklist.
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Source

Where to Look

Financial Information

Management financial statements

Budgets and variance reports

Balanced scorecards

Business plans

Venture capitalist reports, major or private investor reports

Turnaround plans

Finance or accounting department, executive office

Individual Measures

Compensation plans

Balanced scorecards

HR department, executive office

Key Strategies

Technology strategy

Executive white papers

Market expansion plans

Succession plans

Information technology, HR, sales and marketing, various departments

Internally to an organization, you may be able to obtain copies of what are known as management versions of the income statement, balance sheet, and cash flow statement. Management versions of financial statements provide more detail than published versions. More detail will allow you to determine more measures, issues, and trends. High-level budget reports that give information on variances and trends will also be critical for you to obtain. These documents will be treated with great confidentiality and sensitivity, so you may need to explain why you would like to examine them.

Compensation plans and balanced scorecards are excellent sources of information about the measures that mean the most to an executive ‚ s wallet. The finance and accounting department is a likely source for documents on compensation plans, or you may obtain them from the executive office of your organization. If your organization uses a balanced scorecard, by all means, obtain a copy for the Senior level. The executive office or your HR department will likely have this information.

Information about key strategies will lead you to obvious impacts on costs, revenues, assets, liabilities, or cash. Executive white papers often discuss the future of one or more key areas of the business.

Important ‚  

Technology strategies or market expansion plans are just two examples of key strategies that you may need to understand so that you can position your WLP interventions to support them. Succession plans can also give you hints about what behaviors and capabilities will be needed in the future. Your information technology department, marketing, HR, and other departments may have this information.

Having Difficulty?

If you are having difficulties obtaining copies of high-level internal documents, don ‚ t give up. Enlist the help of your managers. Devote some time to explaining why you would like access to this information and ask if they can request the information for you. You may want to read ahead in this book to the chapters on positioning your value. Chapter 11 offers a useful format for explaining how you will use existing data and where you are targeting improvements for the organization.

Another way that you can build the trust that gets you access to inside information is by following Jim ‚ s example. Jim (not his real name ) is a professional trainer who was laid off along with his entire department from a company where he had worked for several years. He was hired as a contractor by a firm that delivers specialized software and training classes for labs around the country. Jim knew that it would take time for the managers at his new company to learn to trust him. From the moment he began working under contract, Jim was very enthusiastic in suggesting ways to improve the training and at the same time pointed out how the suggestions would improve the company ‚ s bottom line. After a few months, Jim had become the confidant of several line managers. He was told that he was looked on as a member of their own staffs. In record time, he earned favored status for training assignments, inside information, and an extension from a one-year to a three-year contract. The extension in his contract significantly improved Jim ‚ s personal financial situation.

Important ‚  

It may take time for the managers in your organization to get accustomed to your focus on the company ‚ s finances. The higher the level of the manager, the more time it make take to work your way up the chain of confidence. Nevertheless, if you are trustworthy and keep what you learn in confidence, and if you are consistent, enthusiastic, and diligent in looking for opportunities to improve the bottom line, you will eventually be rewarded with the additional trust and information you seek.




Quick Show Me Your Value
Quick! Show Me Your Value
ISBN: 1562863657
EAN: 2147483647
Year: 2004
Pages: 157

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