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The Smart Way to Analyze a Company’s Financial Results

Financial ResultsIf you are an investor, you will more than likely agree that you need to know a good deal about a company before buying stock in it. You will also likely agree that one of the most important things to know about a company is how well it has managed its finances. After all, a company that doesn’t manage its finances well won’t be as likely to be profitable, which means that it will more than likely not be a very good investment.

A more sensible approach would be to pick a small number of smart and targeted metrics that you can use to predict a company’s future trajectory. For example, it can be helpful to look at a company’s current debt level, but this in itself probably will not tell you a whole lot about the company’s financial health. On the other hand, if you are able to, for example, see that a company has been steadily decreasing its debt level over the past several years while at the same time earning a greater rate of return on its invested capital, this is probably a sign of good things (and profits) to come.

Chase Loan Modification Programs Help Hurting Homeowners Get Financially Healthy

Chase Loan ModificationOne of the hardest hit areas homeowners are feeling in today’s down economy is their pocketbooks. More people are reporting that their incomes aren’t going as far as they used to, and many people are seeing their pay decline or seeing their jobs disappear altogether. As homeowners go, the idea of possibly losing their income also means the constant threat of losing their homes.

With mortgages being a hot topic and a primary concern of the economic downturn, many financial institutions are coming up with ways to not only help homeowners retain their properties, but also allow the banks and lenders to continue to operate. Chase Financial is one of the institutions hardest hit by the economic downturn, and as a result they have created a program that works to help homeowners hit hard by the economy to retain their homes. The Chase loan modification program works to benefit the homeowner and the bank by allowing both sides to continue to have a great fiscal relationship now and into hopefully better economic times in the future.

For those who have loans for homes through Chase, the Chase loan modification program works to help homeowners avoid foreclosures. Foreclosure is difficult on individuals, but has a negative impact on banks. For a large institution like Chase, foreclosures are occurring at an alarming rate, and each case of homeowners defaulting creates more costs for the lender. Banks have to deal with litigation in courts, finding buyers for the homes they have foreclosed upon, and ultimately the costs involved are staggering.

Banks also realize that as they lose mortgages, they lose customers, and in turn have less income – foreclosures ultimately create a chain reaction that can end up with homeowners being displaced, and banks failing their customers. Loan modification programs work with the lender and homeowner to find a good middle ground as far as payments are concerned, allowing the homeowner to retain their home and the bank to retain a customer. These programs work by altering the terms of the loan, usually length and interest rates, to be made easier to repay for the consumer.

As a Chas customer, you may be wondering how to get started with a program like this. Thankfully, there are wonderful resources like http://lanzon.se that provide information on how to start applying for the Chase loan modification program, as well as other information that can allow you to start working on getting a better mortgage to put yourself in a better position for the future. Loan modification programs work to create a better situation for the homeowner, so why not take advantage? Start today!

Why Financial Goals Undermine Financial Results

Financial Results1I met this week with a leader in a digital media publishing company that is poised for growth. They have a powerful and connected new board driving them to grow the business. They have a strong platform to build on. They have a devoted following who believes in what they have done in the past.

I began, as I usually do, by asking, “What’s your Point B? What will successful growth look like for you?”

His answer was all about the financials.

I hear this a lot. We are measured by our financial success (both internally and externally) so we start to see the financials as our objectives.

This is an enormous trap that snaps the legs off many businesses. And here’s why:

Your financials are the results of organizational strategy and execution. As organizational goals, financials are generally not actionable. Other than putting money into passive financial investments, there are no direct actions we can take to achieve financial goals. And if goals aren’t actionable, they are nothing more than wishes. Very distracting wishes.

As many business leaders have learned the hard way, we cannot directly control our financial results. Sure, we can influence them – but we are ineffective when we put our focus on trying to control them. Setting financial goals is an attempt to control what we can’t control and results in tremendous squandering of focus, energy, time, good will and much more.

So, if we can’t control the financial results, what can we control? We can create the conditions that will produce the results we want to see. This may seem at first like semantics, but we all frequently see leaders who by focusing on trying to create the money overlook the very strategies and actions that would otherwise lead to the money.

No matter what your mission statement says, setting financial objectives makes money the purpose of your organization. The primary goals and objectives of any organization inform its decision-making, interactions and everything else. When your primary objectives are financial, your people can’t help but make decisions that communicate to customers and prospective customers that money is what you care about. As your customers are an important player in your growth, the effort to focus on money as a goal actually undermines its own achievement.

Making the bottom line your main purpose in this way robs you of the opportunity to capture the hearts, minds and energy of your customers, your staff, your vendors, and the public. Focusing on the money keeps you from having a higher purpose that people can really get behind, talk about, and want to work hard for.

Growth is not a one-sided event that is all on your company to create. Growth is always a collaboration between an organization and its customers, staff, vendors and others. Focusing on the money, which is only of interest to one party in the collaboration, actually denies and sabotages the existence of that crucial partnership.

So, what do I coach my clients to do instead?

    1. Develop a clear picture of the purpose of your organization. What business are you in? What is the meaning of your products and/or services to your various audiences?
    1. Know your desired financial results. Revenues are a critical guide and measure of organizational health and progress, but should never be your primary objective. Even (as in the case of banks, investment companies, etc.) when growing money is your product and service!
  1. Set objectives that create the conditions for the financial results you want to see. Set objectives based on actions, behaviors, or things your organization can create that support both your organizational purpose and your desired financial results. Use the results as a measure rather than as the objectives themselves.

The most successful companies already know this: Focus on creating the conditions that lead to the results you want to see and the results will take care of themselves.

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