Wednesday, October 12, 2011

"How many of us have sat in on board meetings where the analysis of historical financial data went on far too long with little attention given to the predictors of future performance?
The fascination with analytics is understandable. How better can one achieve competitive advantage in a manner that is hard to replicate? But clearly there is a long way to go to enable managers to practice this kind of data-driven decision making. It will require dedicated talent who combine analytic ability with a basic understanding of the business, as well as increased attention given to analytics..."
And understanding the business one can only get through experience.
Hence my approach to use hospitality proven ratios... ratios of cost, ratios of revenue generation, ratios... especially when dealing with "in the future" happening business. 

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