Pithy leadership statements can be annoying, but when forced to make a difficult decision quickly, they can be sage wisdom. This is especially the case when it comes to fiscal decisions. Perhaps this is why much of the biblical proverbs are about money. Here are four modern fiscal proverbs and why they will help you be a better leader.
1. Numbers don’t lie.
Numbers don’t lie when it comes to our bank accounts, yet they’re often ignored when it comes to employee performance. If you can’t measure it, and point to your accomplishment, then why do it? If people aren’t held accountable by data, our coaching is really based on feelings and intuition, not performance. After prayer and relationship building, start with the numbers. If you don’t have the numbers, create an unbiased system. Then, make decisions using it.
2. Intangibles are intangible.
When faced with ugly financial statements, we’ve all heard the appeal to intangibles, but intangibles are just that, intangible—they don’t pay the bills. The garbage collector won’t get the job done on the basis of purely good intentions. The collector can have all the great intentions in the world and the trash can still be sitting in front of my house. Likewise, the collectors won’t keep picking up my trash on the basis of my good intentions—they need to be paid. Why do we let intangibles guide businesses when intangibles will fail us? The numbers should back your intentions: does a pro forma and past financials prove it? If not, then you probably shouldn’t do it.