The 7 most important personal finance ratios

Your personal financial statements, specifically net worth and the monthly budget, use your financial data to describe an individual’s or household’s financial condition. With some number-crunching, you can calculate personal finance ratios as tools designed to evaluate your financial strength and position. 1.

Like the price to earnings ratio, the current ratio is one of the most famous of all financial ratios. It serves as a test of a company’s financial strength and relative efficiency. For instance, you can tell if a company has too much, or too little, cash on hand.

By tracking your personal financial statements, you can simply calculate all of the above ratios automatically. I strongly suggest that you monitor both your personal finance ratios AND your personal financial statements on a monthly basis. If not, definitely refresh your personal financial ratio analysis every quarter.

The 7 most important personal finance ratios

Pay bands example

See below image for the Pay bands example diagram. Salary bands (or pay ranges) are how you define the target pay for employees within job grades. For each Level, a company should decide the low-end and high-end of the pay that level will command. Salary bands help when making offers, retaining employees, and planning for future growth.

(Pay Band 2 = $15-$24 per hour). Organizations with pay band structures in place allow managerial control and discretion to reward exemplary employees while keeping within a predetermined budget. Pay bands differ from pay scales, which typically appear during the job offer stage of salary negotiations.

As the pay band number increases, job responsibilities correspondingly increase. (Pay Band 2 = $15-$24 per hour). Organizations with pay band structures in place allow managerial control and discretion to reward exemplary employees while keeping within a predetermined budget.

Pay bands example

Band and salary structure

See below image for the Band and salary structure diagram. Salary Bands. Salary Bands (or Pay Ranges) are how you define the target pay for employees within Job Grades. For each Level, a company should decide the low-end and high-end of the pay that Level will command.

However, what makes the broadband salary structure different is that it consolidates many pay grades into a few broader bands of pay, meaning there are fewer pay grades and each one has a wider salary range. Using a broadband salary structure, one role at the company may have a salary range of $45,000 to $80,000, with the following pay grades:

Using a traditional salary structure, one job at the organization can have a salary range of $35,000 to $60,000, with the following pay grades: Companies that use the traditional salary structure may appreciate that it gives employees the opportunity to get promoted from one pay grade to the next.

Band and salary structure

How to develop a strategic plan structure and process

See below image for the How to develop a strategic plan structure and process diagram. You want to make sure the plans align. The steps in creating a plan for a department are the same as for an overall strategic plan, but the mission statement, vision, SWOT analysis, goals, objectives, and so on are specific to only the people in your department.

Strategic Planning Process – Strategic management is process of the regular and continuous planning, leading and analysis of all the necessary actions that help an organization to meet its goals and objectives.

Section 1. An Overview of Strategic Planning or “VMOSA” (Vision, Mission, Objectives, Strategies, and Action Plans) Section 2. Proclaiming Your Dream: Developing Vision and Mission Statements Section 3. Creating Objectives Section 4. Developing Successful Strategies: Planning to Win Section 5. Developing an Action Plan Section 6.

How to develop a strategic plan structure and process

Business model the soul of business

The term business model has gained incredible popularity in the last decade as one of the most important ways of approaching business innovation and business strategy. If you’re like most people, you probably define business model as a company’s plan for making money.

The “business model” for Microsoft, for instance, was to sell software for 120 bucks a pop that cost fifty cents to manufacture … The business model of most Internet companies was to attract huge crowds of people to a Web site, and then sell others the chance to advertise products to the crowds.

A successful business model just needs to collect more money from customers than it costs to make the product. This is your profit—simple as that. New business models can refine and improve any of the three components mentioned above. Maybe you can lower costs during design and manufacturing.

Business model the soul of business

Salary band structure

See below image for the Salary band structure diagram. Salary Bands. Salary Bands (or Pay Ranges) are how you define the target pay for employees within Job Grades. For each Level, a company should decide the low-end and high-end of the pay that Level will command.

Using a traditional salary structure, one job at the organization can have a salary range of $35,000 to $60,000, with the following pay grades: Companies that use the traditional salary structure may appreciate that it gives employees the opportunity to get promoted from one pay grade to the next.

However, what makes the broadband salary structure different is that it consolidates many pay grades into a few broader bands of pay, meaning there are fewer pay grades and each one has a wider salary range. Using a broadband salary structure, one role at the company may have a salary range of $45,000 to $80,000, with the following pay grades:

Salary band structure

Management consultanting business framework

See below image for the Management consultanting business framework diagram. Often, consulting frameworks involve analyzing a business’s performance and outside factors that may prevent it from succeeding. 1. PEST analysis PEST analysis is a method that managers can use to evaluate any major external factors that may influence their operations to help them stay competitive in the market.

Top 5 Business Frameworks according to Strategy Consultants Porter’s Five Forces Model Hambrick and Fredrickson’s Strategy Diamond Treacy and Wiersema’s Value Disciplines Ansoff Matrix BCG Growth-Share Matrix

Management Consulting is the term used to describe the practice of assisting companies in improving their performance. The focus is usually centred on analysing organisational structures and procedures. The product of the consulting is usually the implementation of plans and projects for improvement. What is a Management Consulting Template?

Management consultanting business framework