Ukraine Universities

Revenue growth is a positive sign of your organization’s ability to meet a societal need. Growth, therefore, represents some prima facie evidence that your organization is doing something worthwhile. But there is a check on this process. The check is sustainability, the power to keep on going. Cash flow is the way that this check becomes active. No cash, no go. If your customers, prospects, supporters, patrons, taxpayers or whoever provides your revenue don’t provide enough of it, in cash, to cover your costs quickly enough, the organization must radically change. Your company must retrench, merge, sell off assets or otherwise stop
being what it was and either curtail its operations or rethink its viability.

There is an old saying that if you don’t know where you are going, any road will get you there. A great many
businesses operate by that concept. The majority, fortunately, do not. But even in those businesses with a fairly clear plan of where and how they are moving, the cash dimensions of that forward motion are often still pretty fuzzy. It is a rare business in which all the key people know where their firm is headed, why it is taking that particular direction, and what the cash implications of that movement actually look like. If top management is the only place where that information and sensitivity reside, there will be a lack of focus and energy as many key people below that level wander along other roads.