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Podcast: Good Morning, HR
Episode: Understanding Business Financials
Description: Understanding a business’ finances is fundamental to being a successful leader. In this conversation with Greg Crabtree, author of Simple Numbers and Simple Numbers 2.0, Coffey explores the key concepts business leaders—and especially human resources leaders—need to understand in order to measure financial success.They discuss what Greg calls “the most important number in business” (more important than even net income); how direct labor should be measured; why the ability to measure output rather than activity would “move HR to the next level;” measuring labor and management efficiency; and common key performance indicators that companies should stop using.