#4 Brief presentation in Peter's Tips series on Practice Management. Deals with the critical need to understand the numbers and metrics.

1. Manning Charles &
Associates Limited Peter’s Tips on Practice Management
#4 – Understand the numbers
• Ensure that you understand the numbers. By this I mean learn what the
financial numbers mean
• In addition, you should be tracking and a reviewing a range of
performance metrics – these are not necessarily financial, but often
have $ implications
• You can spend a lot of time developing and tracking metrics. My advice
is to stick to a few critical ones. Some of these are generic, e.g.
chargeable hours, rate realization, others may be sector or industry
specific
• I have found that many people understand metrics or performance
indicators more clearly when they are presented in a graphical format
• Recognize that the numbers and metrics tell you a story. Now the story
may not always be one that you wish to hear, but my recommendation
is that you ‘listen’ carefully to the tale and then decide what you are
going to do.
Peter’s Tips © July 2009 1
Peter M Salmon and Manning Charles & Associates Ltd

2. Manning Charles &
Associates Limited Peter’s Tips on Practice Management
#4 – Understand the numbers
• Now if you do not know what story the numbers are telling you, talk to
someone who can help you understand
• Muddling along with poor understanding is likely to critically impact your
business and not for the better
• A key point to remember is that making the effort in this area will help
you manage the overall practice more effectively and profitably, which
after all is what you want.
• If you can do this personal stress levels may well be eased.
Peter’s Tips © July 2009 2
Peter M Salmon and Manning Charles & Associates Ltd

3. Manning Charles &
Associates Limited Peter’s Tips on Practice Management
Peter Salmon – Principal - Manning Charles & Associates Ltd
• Peter is a senior executive and consultant with an extensive business management,
professional services leadership and delivery background. He combines this with
significant organisational change, business assessment, and resource management
experience. This is complemented by having worked in a number of countries and a
varied range of business sectors.
• Peter's consulting experience includes IT consulting, general consulting, financial
investigations and valuations, and litigation support. His other experience includes
practice development, practice management including service economics and
profitability, quality assurance and resource management.
• This knowledge and expertise is combined with a strong record of achievement. For
many years Peter has worked with CxO level executives, management and staff to
provide business focused outcomes to issues.
Should you wish to contact Peter on this or any other matter, where he might be able to assist
then :-
Phone:- +64 21 533651, or
Email:- manningcharles@woosh.co.nz
Mail:- PO Box 25197, Panama St, Wellington 6146, NZ
Peter’s Tips © July 2009 3
Peter M Salmon and Manning Charles & Associates Ltd