According to the young shop assistant in Garmisch-Partenkirchen I don’t know how to walk correctly. I am doing it all wrong. He says that instead of landing each step on my heals I should land on the ball of my feet. Apparently this will not only improve my posture but also my perambulation efficiency too.One hundred Euros lighter I leave the shop with a pair of Vivobarefoot shoes and the perfect solution for hill trekking. This made me think about how my clients must feel when I point out that they are not even getting the basics right.
I have come across so many CEO’s that simply do not know their company’s real cash position. I am not talking about bank balances but the real situation (revenue due in + cash in bank, less invoices outstanding, liabilities, scheduled payments, inventories and working capital etc.) – the real cash position. You can’t get anymore basic than that. Attempting to make decisions without this fundamental information is like trying to cross a busy highway without knowing how much fuel you have in the tank.
I didn’t learn this from a book or an accountant; I learnt it from hard experience, from deciding that I do not want nasty surprises when it comes to money. The ability to pay taxes, salaries and suppliers is about as fundamental as you can get. A CEO armed with reliable data is more relaxed, self assured and stress resistant – even if it is not always what he or she would wish for.Just like walking, the more we perfect the basics, the further we can go, no matter how hard the terrain.
Have a good week,