The Numbers

Abstract

Numbers, numbers, everywhere you look there are numbers. The key is to be clear about those of greatest relevance. The purpose of this chapter is to help managers to have a basic understanding of those numbers that are important in business. Of course, if we were to cover in a detailed way all the numbers that one bumps into in a management career, then we would need a separate, comprehensive book on this topic alone. This chapter does not attempt to provide an introduction to finance for non-financial managers, for this coverage is readily available both in literature and management seminars. However, the goal of this chapter is to bring managers’ attention to areas where they should have a good working knowledge of what is involved. The bias is very practical, based on numbers that make a difference and those that will be a help in achieving better decisions. Some of the concepts are relatively easy to follow while others in this chapter are more difficult. Both sets are important, even though it is not the purpose of this chapter to turn the reader into an instant expert in any of the fields. Rather, the goal is to create awareness of concepts that are important to successful management.