Chapter 3: An Overview of What an Organization Will Value

In this Chapter:

• An introduction to step 3 of the financial value process: identify financial imperatives

• Basic assumptions underlying the financial examples used in this book

• The keys to what executives value: profit, position, and cash

• An introduction to ABC MediCompany.

You know that numbers are important, but many WLP professionals have not paid much attention to financial numbers. You may be facing the daunting task of figuring out both where to find the numbers you need and how each individual number connects to the larger scheme of things.

By understanding the three fundamental types of financial priorities, as well as the balance that exists among them, you will be able to translate financial measures down through each level of the value chain. As you learn more about financial priorities in this chapter and in chapters 4, 5, and 6, you will be able to complete step 3 of the financial value process. After you understand what you are looking for, you ‚ ll be ready for chapter 7, which addresses step 2 of the financial value process (research financial information).