How financially fit are your managers?

Dave JonesBusiness Matters, eLearning, Finance for Non-Financial Managers0 Comments

Finance for Non-Financial Managers

Most people in management, start their careers as specialists and high-achievers from within the business. Their potential is obvious, so they are promoted through the ranks. But, being an amazing and innovative engineer or a big-hitting sales person does not mean that you will naturally be a great leader.

Many career paths just do not provide the necessary exposure to managing people, budgets and to understanding the nuts and bolts of business that are essential to becoming a successful manager.

From the outset, managers are expected to be decision makers and leaders, this is a heavy burden to carry when you do not have the necessary commercial awareness to understand the full implications of the decisions that you are making.

Becoming financially literate and commercially aware should be one of the first development needs addressed by all managers.

Managers need to understand how a business makes its money, manages its cash, maximises its profits and how each person, role and function can positively influence business performance.

Managers need to own a fundamental foundation of financial literacy, or an understanding of the financial statements and an operational understanding of how they can best use this financial information to make decisions that positively impact on the success of the business.

Being commercially aware is the difference between being able to read and understand financial statements and being able to read, understand and interpret this information to make informed business decisions.

When commercial awareness is embedded in an organisation, its managers begin to ask more informed questions.

Questions that take into account the impact of potential decisions on different parts of the business and also how the outcome of their decisions will finally impact upon the company’s financial performance and results.

  • Has the cost of production gone up? If so, why?
  • Have we changed our pricing model? If so, how has that affected our margins?
  • If our production unit costs have gone up, can we better control our production processes or service delivery?
  • Is there a way to produce a greater product volume at the same cost?
  • Can we raise prices, yet still provide value to the customer and remain competitive?
  • Are we creating value for our shareholders?

When questions become more informed, the right decisions can be made.

Brightbolts are specialists in helping managers and organisations raise their levels of financial literacy and commercial awareness. Our suite of customisable Finance for Non-Financial Managers eLearning courses are used by leading global organisations to equip their managers with the skills, understanding and acumen needed to be financially fit and ready for the challenges of running successful businesses.

Or contact us, to see how we can help you and your organisation….

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