One of the key components of extended performance management (xPM) is financial modeling.
It lives in the ‘Debate’ domain of xPM and is what organizations use to answer questions like:
- What will our financial statements look like in 5 or 10 years, given current rates of growth?
- How will an acquisition impact cashflow in 3 years?
- How aggressive should we be in communicating synergies?
- What’s our optimum debt model, given our market share & growth strategy?
- What happens to margin if we get more aggressive on hiring and pricing simultaneously?
To learn about financial modeling and one of the more savvy consulting companies in this area, check out Blue Stone International’s latest newsletter. Simon has written a timely article in this month’s edition on getting from strategy to execution.
http://www.bluestoneinternational.com/_Newsletters/BlueStone_Newsletter_Q3.pdf
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