In the Black introduces the concept of the Wisdom Pyramid. It is a way of modeling the assimilation of data into meaningful and predictive business decisions.
You will learn how accounting is the primary source of data and how to use this data to work your way up the Wisdom Pyramid using reports and statistical analysis of your business data.
In the Black introduces a model for increased profitability, the Universal Business Model.
Under the Universal Business Model (UBM), communication between the three basic functions of all business increase profitability.
In the Black explains how each department must communicate with every other department, and how it directly affects profitability.
As you learn to increase communication across the business functions of marketing, production, and accounting, you become more profitable as a natural consequence.
When production knows from the marketing function what products and services that customers want, they know what to produce to make the company more profitable. Likewise, if the accounting function of the company informs marketing that costs have risen for a particular product, marketing now knows to raise the price of the product to maintain profitability.
Benchmarking can help drive your profit improvement strategies.
- Diagnose strengths and weaknesses compared to your industry.
- Learn which of your financial measurements need the most improvement.
- Create profit projection scenarios to improve your competitive position.
After reading this book, you will:
- Know how to make the three major functions of business - Marketing, Production, and Accounting - work together more effectively.
- Understand a process of gaining knowledge - even wisdom - to help you make better business decisions.
- Know how to become a Profit Expert within your business.
- Improve your understanding of the financial position of your business.
- Understand more clearly how accounting information can help you manage your business more profitably.
- Be able to develop action plans to implement these Nine Principles immediately in your business.