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Professional Resource Center
Perhaps the single most important part of evaluating an organization’s culture is gaining a clear understanding of its revenue streams, the expectations of customers and other pressures exerted on the organization by the business environment. Over time, these external forces can have a profound effect (positive or negative) on an organization’s culture. The Breckenridge Financial Indicator™ (BFI™) is designed to benchmark your organization’s performance against standard measures defined by Dun and Bradstreet for companies within your SIC Code. There are fifteen ratios that are calculated from financial information submitted to the Breckenridge Institute, with data being plotted over a five-year period to show trends. The ratios evaluate three critical aspects of your organization’s financial situation:
The benchmark data indicate what the ratio should be in a “well-run” organization, but guidelines and explanations for interpreting each graph are included because your organization may have unique underlying factors that make it different from the norm. The Dun and Bradstreet ratios show relationships between line items on your organization’s balance sheet and consequently are two-dimensional. When these ratios are linked to the quantitative scores on the Breckenridge Culture Indicator™, they become a three-dimensional snapshot of your long-term financial and non-financial performance. The Breckenridge Financial Indicator™ also evaluates financial performance in areas that do not show up on financial statements, including an organization’s top customers, top expenses, employee retention, and other key indicators. This financial analysis is often a “window” into underlying cultural assumptions and patterns of spending that may not be revealed in more traditional analysis. The indicator also evaluates the financial impact of cultural misalignment between leaders, managers, and staff members. In other words, leaders with misaligned views may pull in one direction, while managers who see things differently pull in another direction, and staff members resist one more change initiative. This is like driving a boat full throttle with the anchor dragging along the bottom, or driving a car with one foot on the gas and the other on the brake. If each employee in a twenty-person organization squanders one hour of time or energy per day on such misalignments, it could cost the organization as much as $150,000 per year. Some organizations squander up to two or three hours of energy per day on rework, work-arounds, downtime, inefficiently run meetings, and endless e-mails, which equates to about $440,000 per year – a hidden cost that’s rarely seen on a balance sheet. Used in combination with the Breckenridge Culture Indicator™, the BFI™ often yields substantial return on investment and gives leaders and managers the quantitative data they need to make informed, fact-based decisions. Call the Breckenridge Institute today at 1-800-303-2554 to schedule a free phone consultation about how you can best use the BFI™ to improve your performance. DOWNLOAD FREE PDF BROCHURE
Personality in Context®
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