Quick! Show Me Your Value

Let ‚ s Review:

• Financial information is often treated very confidentially. The amount of data you may have access to will vary depending on whether you are internal or external to an organization.

• In general, executives value three broad categories of financial impact. These categories are their financial imperatives: profit, position, and cash.

• It is important to know the basic types of financial statements and what they describe, so that you can explain what you are looking for when researching financial data. Profit is shown in the income statement, position is shown in the balance sheet, and cash is shown in the cash flow statement.

• Executives value solutions that can be shown to help maintain or improve the balance among their financial imperatives. In the language of finance, balance is described in the form of ratios. There are two types of ratios: operating ratios and financial ratios.

• This book uses a hypothetical case involving a hypothetical company ‚ ABC MediCompany ‚ to help explain financial value concepts and demonstrate financial value communication.

In the next chapter, you ‚ ll take a closer look at tying the value of WLP interventions to the first financial imperative: profit.