Our financial performance depends on being able to effectively manage the individual contributions to it. Completing financial management tasks on time is vital to achieving a good result.
The primary input is our performance on projects, which we need to complete on time:
- time sheet submission
- invoicing our clients
- revenue recognition
- collecting our money.
As you know, we hold our Asia Region revenue recognition reviews on the Wednesday following completion by your teams on Tuesday night after end of month.
It appears that in July we only had one country team that had completed revenue recognition by the Wednesday morning.
This situation is plainly unsatisfactory. It prevents a proper review to be undertaken and then limits the opportunity to undertake corrective action where required.
This requires completion of our owning revenue recognition and negotiation with and completion of working revenue by any units we are working for.
In Singapore, only a few weeks ago Country Managers committed to better behaviour than this would indicate. Would each Country Manager meet with your team to discuss why this is happening and address whatever changes are required to ensure we complete revenue recognition on time?
We have had a great result in July and one you can be very proud of and happy with. However, we will only achieve our revenue budget, our profit budget and our working capital target if we are committed and disciplined in completing financial management tasks on time every month.
Would you please advise me when you have met and the changes in behaviour or process you have agreed with your country team?
I know that if we are disciplined and focused we can achieve what we want. We will continue to achieve the great outcome we did in July, if we go on this journey together.
Again, well done in July and let’s see how well we can do in August.