Many years ago I read a story, in which a traveller asks for help finding Dave’s Bar. The local man replies after some thought, “Well, I wouldn’t start from here”.

I have had a number of meetings recently in which the subject of how best to report on financial and business performance has been debated. Traditionally, detailed reports are presented giving chapter and verse on past activity, explaining why the results are what they were, and how the variance between budget and actual is accounted for.

All this is fine, but it leaves me asking the same question, “So what?” You know (I hope) where you want to go, so given where you are now (and it may not be where you wanted or expected to be), how are you going to get to Dave’s Bar?

I suggest that reports should spend no more than 20% on historical analysis, noting key events and any exceptional activities, and the remaining 80% on what you will be doing differently as a result of what has been learned, and what impact these changes will have on your forecast.

By reporting more on the future than the past, and incorporating lessons learnt as you go, you dramatically reduce the chances of being caught out.

This should spell the end of the traditional annual budget, and the start of regular reforecasting. Yes, it’s interesting to know how we got here, but of paramount importance is to know how we are going get from where we are now, to where we want to go, even if it’s only to Dave’s Bar.

As anticipated, my last blog about a simple web site related topic like the conversion rate between visitors to your web site and the number of potential customers engaging with you (for example by completing a contact form) created quite a bit of correspondence.

The vast majority of comments emphasised complex and (to be fair) quite interesting ideas about how to get the best out of your website. But I felt they missed the point. Most businesses are run by hard working individuals who have not got time to understand and implement subtle marketing ploys.

Which brings me to the question of how you eat an elephant. The answer is, of course, a mouthful at a time. To try and take too big a bite out of a problem leaves you with bad indigestion.

You need a website for two reasons, to increase your brand awareness, and to generate sales, and not necessarily both at the same time. Whatever tactics you use to achieve your goal need to be SMART (Google this if you can’t remember the acronym!).

I believe that life is complicated enough without making it harder than it needs to be.

The next time you want to make your business better, talk to someone who can talk to you about it in simple “plain English”.

Identify the problem, break it into manageable chunks, and deal with it! Life is hard enough, without it being taxing.

It is so hard to keep in touch with everyone. Family, friends, associates, business contacts, the list goes on and on.

I count myself lucky to know as many wonderful people as I do (and I am sure you know who you are!). But when I look back at my life I, realise how many wonderful people I have known, but who, for one reason or another, I have lost touch with.

Here’s a thought, perhaps not everyone we meet is supposed to be in your life for always.

Not all relationships can last forever. Relationships change over time. There will be times when a temporary relationship is necessary (such as bringing in a consultant or expert), times when a cry for help is best made to a stranger.

How long is the person we talk to next destined to be in our lives?

In business, as well as in my personal life, I can look back and see how my needs and wants have changed. And as I have grown and developed, I can see how I have drifted into (and out of) other people’s lives.

Rather than get depressed about how many good people I no longer speak to on a regular basis, I try to celebrate the wisdom I have gained from knowing them.

I read this phrase in a book recently, and it has stuck with me. The context was not about where I was physically, but in time. Do I spend time thinking about the past, the present, the future, or some combination of them?

What kind of questions do you ask? Are they about the future:

What’s for dinner, What’s happening next, What do I want from…

Or about the past:

What was I doing when, Can you remember why, When did we…

There is no right or wrong. But the kind of questions you ask do reveal a lot about the kind of person you are. Are you a reflective person, who analyses the past to make sense of the world? Or the kind of person who is always starting from today, and thinking about the future?

Both types have their place in the world, and although they may have difficulties relating to each other (!), they need to understand the relevance of the other person’s point of view.

In business, everyone knows you must spend time thinking about the future. You have also got to be realistic about the past and present.

Think about the last meeting you were part of. How much time did you spend talking about things that happened in the past, and how much about what you were going to do in the future? Was the balance right?

Talking over the MP expenses story with some friends, there seem to be two issues:
The rules for reclaiming expenses, and
The administration of the rules.

I believe that the rules are probably about right, possibly a bit generous, but basically right. The governing document makes it very clear what should, and should not, be claimed, and why.

However, I have major issues with the way in the rules were administered. Greed and maladministration have allowed MP’s to claim for items that do not fall within the rules they themselves set. Quite clearly, not only did some MP’s break their own rules, but the laws of the land as well.

This is not a modern problem, in AD130 Juvenal wrote, “Sed quis custodiet ipsos Custodes?” (But who will guard the guards themselves?).

There is no perfect system. But there is a compelling case for better independent scrutiny.

One day a florist goes to a barber for a haircut.
After the cut he asked about his bill and the barber replies,’ I cannot accept money from you. I’m doing community service this week.’
The florist was pleased and left the shop.
When the barber goes to open his shop the next morning there is a ‘Thank you’ card and a dozen roses waiting for him at his door.

Later, a cop comes in for a haircut, and when he tries to pay his bill, the barber again replies, ‘I cannot accept money from you. I’m doing community service this week.’
The cop is happy and leaves the shop.
The next morning when the barber goes to open up there is a ‘Thank you’ card and a dozen donuts waiting for him at his door.

Later that day, a college professor comes in for a haircut, and when he tries to pay his bill, the barber again replies, ‘I cannot accept money from you. I’m doing community service this week.’
The professor is very happy and leaves the shop.
The next morning when the barber opens his shop, there is a ‘Thank you’ card and a dozen different books, such as ‘How to Improve Your Business’ and ‘Becoming More Successful.’

Then, a Member of Parliament comes in for a haircut , and when he goes to pay his bill the barber again replies, ‘I cannot accept money from you. I’m doing community service this week.’
The Member of Parliament is very happy and leaves the shop.
The next morning when the barber goes to open up, there are a dozen Members of Parliament  lined up waiting for a free haircut!!

And that, my friends, illustrates the fundamental difference between the citizens of our country and the Members of Parliament.

Blogging as a way of communicating is being debated. Is it a good thing, is it just plain self-indulgent? Is it right to give the general public the ability to speak, well, so publically? http://journalismleadersforum.blogspot.com/2009/05/12th-forum-itv-news-chief-times-web.html

As with all forms of media, from the first printing press to twitter, there are those who just don’t get it, and those who do. There are those who use it well, and those who don’t.

Blogging is a relatively new medium that might yet have its place in history, but that place has to be fought for and proven. Twas ever thus.

I believe it can be a force for good, and Jo Geary’s eloquent support is key to its survival.
http://www.joannageary.com/2009/05/13/qit8-im-sick-and-tired-of-this-infernal-blog-debate/

At a breakfast meeting this morning, the excellent speaker said that there were three things that were good at travelling globally:
Disease,
Information,
Money.

She was talking about the charity she worked for, but made a compelling case for the involvement of all businesses and individuals to get involved.

The world we live in is no longer restricted to those we live next to. Our next door neighbours now live across the globe.

Our success (individual and corporate) depends on the well being of those we live with. As we hope to be looked after when things don’t work out, it is our responsibility to look after those less fortunate than ourselves.

How do we know who to help?

The message is: find out who you can best help, and get involved…

One of the oldest concepts in international economics is the theory of purchasing-power parity (PPP). PPP argues that, in the long run, exchange rates should move towards levels that would equalise the prices of an identical basket of goods and services in any two countries.

The Economist uses just one item: the Big Mac.

If a Big Mac costs £2.50 in the UK, at today’s exchange rate (£1 = $1.46677), a Big Mac in the US should cost $3.67.

If it costs more than $3.67 then the PPP concept suggests that the pound is overvalued (or the dollar is undervalued). The consequence of this is that, all things being equal, either the pound will go up, or the dollar will fall.

Too simple? Possibly, but as a measurement of exchange rates, Big Maconomics has endured.

Sometimes I think we make life too complicated and not enough fun.

Much is being said in the media these days about what economic recovery will look like. I suspect that life is too complicated to find generalised answers to this question, and that we are better looking at more specific areas.

One measurement of economic output I was told about many years ago was the “crane count”.

Very simply, how many cranes can you see on the skyline of your city?

Each crane represents an army of workers delivering a building project. Each one represents confidence in investment. There is no such thing (unless I’m much mistaken) as an idle crane.

How many cranes can you count, and are there more, less or about the same as this time last year?