http://jamieflinchbaugh.com/2010/07/valid-or-reliable-trying-to-break-the-tradeoff/ on lean culture, transformational leadership, and entrepreneurial excellence Mon, 21 May 2012 17:05:02 +0000 hourly 1 http://jamieflinchbaugh.com/2010/07/valid-or-reliable-trying-to-break-the-tradeoff/comment-page-1/#comment-1831 Kevin Wed, 28 Jul 2010 13:33:36 +0000 http://jamieflinchbaugh.com/2010/07/valid-or-reliable-trying-to-break-the-tradeoff/#comment-1831 Good post - this is why ROS (return on sales) has become my most important financial metric. What has been surprising is how hard it has been to convince others - including senior finance people - that it is valid, even though it is nearly synonymous with basic profitability. It's almost as if it is TOO simple and therefore cannot be valid, even though those guys work in a world of ratios - just fancier sounding ones! Good post – this is why ROS (return on sales) has become my most important financial metric. What has been surprising is how hard it has been to convince others – including senior finance people – that it is valid, even though it is nearly synonymous with basic profitability. It’s almost as if it is TOO simple and therefore cannot be valid, even though those guys work in a world of ratios – just fancier sounding ones!

]]> http://jamieflinchbaugh.com/2010/07/valid-or-reliable-trying-to-break-the-tradeoff/comment-page-1/#comment-1830 leansimulations Wed, 28 Jul 2010 13:32:48 +0000 http://jamieflinchbaugh.com/2010/07/valid-or-reliable-trying-to-break-the-tradeoff/#comment-1830 Too often I have seen management look at a particular increase in defects and jump to conclusions. However, when you look more closely at the rate, it falls within statistical variance. I guess it must be psychological. We feel that more is bad, and something needs to be done, even though the ratio is the same! Too often I have seen management look at a particular increase in defects and jump to conclusions. However, when you look more closely at the rate, it falls within statistical variance. I guess it must be psychological. We feel that more is bad, and something needs to be done, even though the ratio is the same!

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