What exactly is financial resilience? Well, it has been defined as “the ability to access and draw on internal capabilities and appropriate, acceptable and accessible external resources and supports in times of financial adversity”. 1
There are many factors that can cause financial adversity, including (but not limited to) global pandemic-induced Government shutdowns. Regardless of the cause, if your organisation faces financial adversity or even potential adversity, it will need financial resilience to come out the other side alive and well. Continue reading…
How healthy are the finances of your organisation?
Much like a medical health check, a financial health check is something that should be done on a regular basis. A financial health check involves a robust analysis of both your profit and loss and balance statement over a multiyear period, usually three years.
Here’s seven reasons why you should conduct a financial health check.
When you want to check the financial performance of an organisation, the first and most obvious indicator is profitability. Even in the ‘not for profit’ sector, profit is the key indicator of financial performance – has the organisation operated within its income for this and the most recent years? Has it generated a surplus to reinvest in social impact and organisational sustainability and growth?
It’s easy to lean on profitability as the key indicator of financial success, and sometimes as a proxy for good organisational governance and management. Whilst profitability is the key driver of organisation sustainability, viewed in isolation, it can be a bit of a blunt instrument. The key risk is that overall organisational profitability can hide a lot of issues. Whilst the results for the business as a whole might look great – and they may genuinely be reflective of business performance as a whole – you could have some significant losses hiding behind some hero income streams.
Choosing the right Key Performance Indicators (KPIs) may seem overwhelming, but the right metrics, and subsequently the measuring and reporting of those metrics, can provide enormous value to not for profit leaders and their boards.
The right KPIs can have the ability to provide meaningful insights at a glance, which is particularly useful for stakeholders that are not involved in the organisation on a daily basis.
With that said there are a number of key areas to take into account when considering which KPIs to select.
Data visualisation will change your life and there’s a very good chance that it already has. Start-ups will talk about “hockey stick growth” and you’ve no doubt heard the term “flattening the curve”. Both terms refer to data visualisation and quite simply the insights that are drawn from being able to see past a mass of numbers, as data is presented in graphs and infographics. This cuts through the noise often created by large sets of data and allows people to see trends and outliers which in turn brings a focus to the key indicators that drive change.
Before we move to the impact that data visualisation can have, it’s worth defining data visualisation. Continue reading…
Different roles and situations in life require us to speak a different language. The most obvious that comes to mind is when we travel or communicate with someone whose first language is different to ours. The less obvious is when the language doesn’t change but you enter into a different area that has its own terminology that provides meaningful insights and understanding within the subject area. A good example of this is sports. If you’ve ever had a conversation with someone who deeply understands a sport that you don’t, you will have noticed a range of words and expressions used that leave you confused.
Many subjects have their own terminology and the same can be said for health, science and finance. Continue reading…
At this stage of the financial year, the thought of planning the financial year ahead has probably crossed your mind. If your organisation has a formal planning process that is in place for the start of every calendar year, you may have started planning already.
Before we go into planning mode, or agonise about the mere thought of doing any sort of planning, is planning ahead even useful? Is it just a waste of time?
Below are three reasons that planning is not a waste of time, but a valuable exercise.
The simplest and easiest way to set next year’s marketing budget is to take last year’s budget and simply add the percentage that you want to grow by. Within 60 seconds your new marketing budget is set, but this doesn’t allow for external market factors like new providers, changing government policies or the needs or wants of customers.
Alternatively, you could adopt a zero-based marketing budget. This will take longer to put together, but it will make you ask the hard questions about the outcomes you want, how much you need to spend to achieve them and the different options available to you
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Community Business Bureau would like to acknowledge the traditional owners of the lands on which we work and live: the Kaurna, Larrakia, Wann-gal, and Wajuk people, and the Boon Wurrung and Woiwurrung (Wurundjeri) peoples of the Kulin Nation. We recognise their continuing connection to land, waters and culture, and we pay our respects to their Elders past, present and emerging.