Ram Charan is a well-known business advisor to CEOs and business executives in companies ranging from start-ups to the Fortune 500. He has a rare gift for translating complex ideas into simple terms that everybody can understand. Here is an excerpt from his classic book, What the CEO Wants You to Know. These basic questions are designed to help you step back and get a picture of your company's "total business."
2) Are sales growing, declining or flat? What do you think about this growth picture?
3) What is your company's profit margin? Is it growing, declining or flat?
4) How does your margin compare with competitors?
5) Is your company's cash generation increasing or decreasing? Why is it going one way or the other?
6) Is your company gaining or losing against the competition?
If you can answer these questions, you will have a good grasp of the fundamentals for your company.
Posted by
at 02:18 PM November 26, 2005
