What Makes Some Firms More Profitable Than Others

Source: Accounting Today

Consultant August Aquila cites some qualities that have made some firms high performers. Here are some highlights:

• They set goals—no more than five.
• Partners are devoted to the realization of the firm’s goals.
• Everyone in the firm knows the goals and how their efforts contribute to them.
• They determine key performance indicators and base their compensation methods on the degree to which they are achieved.
• Management develops methods and provides resources to assure implementation of plans necessary to achieve goals.
• Leaders never assume there is an understanding of the firm’s vision and goals (or of any other communiqué) until people demonstrate their comprehension. That is what defines good communication.

For the complete article, click here and select Driving Profitability.

From Accounting Today, November 26, 2007, SourceMedia Inc., One State Street Plaza, 27th Floor, New York, NY 10004, 800-221-1809.