Check Health, But not Only the Profitability
Jagdish B Acharya, Consultant, India, Premium Member
I agree that sometimes periodic health checks may reveal the need for a turnaround. But it may not do so in all cases, as the changes that occur during periods of checking may not be big enough to catch attention. One has to
take long term health checks.
Performing only a profit check may sometimes become the cause of such an emergency situation. If the result is too close or if the check neglects divisions that are making less profit, then it may eventually burden the other units and cause them to become less profit making divisions. A realistic danger.
