<aside> 💡 Last edited on: January 18, 2024

Contributors: @Jessica Zwaan, @Luke O'Mahoney, @Andy Ayim MBE

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Why

Health is defined as “the state of being free from illness or injury.” In the context of your team, this means being able to, “fix the roof while sun shines.” Don’t wait for crisis to overcome, and be transparent about what great company performance looks like, when you are free from crisis or recovering from dramatic change.

The reason you may want to build a policy such as this is to give your team transparent access into what healthy operations looks like for your company.

Health is not just measured or tested in a crisis, for your team orgnisational health matters every day. A big part of why this is important to think about as a team, and as a HR team, is that your organisational health is dependent on a base-line level of security. Security in your company’s financials, security that your company wil behave the way they say they will, and security that the team can do their best work regardless of their home life, personal circumstances, or background.

What

Alignment

Setting expectations to your team and having the team understand what’s expected of them. Mission alignment to your fiscal responsibility keeps you on a path of genuine focus.

<aside> 💡 Are you delivering on your mission statement - how far from the path are you?

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• Financials of your business, and understanding the spend, runway, and how we’re performing financially. Increasing financial literacy.
• Base line: do they know what burn and runway means? Do they know what the C’suite team is thinking about or basing their decisions on?
• Transparency around financials? Deciding on your level of transparency is an important decision. Cash flow, is that a scary thing to inform people about? Does it help them rally?
• Tier 2 (what’s important/what are we thinking about)
  • ACV (average contract value)
  • Last funding round £
  • CAC:CLTV payback ratio
• Tier 1
  • Runway (cash out date)
  • Burn rate
  • Opex / Headcount $

<aside> <img src="/icons/rocket_gray.svg" alt="/icons/rocket_gray.svg" width="40px" /> Resource for developing Financial Literacy (Amanda Halle)

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