Income/Outcome
defines and delivers the three components of Business Acumen:
- a clear understanding of
business dynamics, and how they are represented in
financial statements and analytical tools.
- practical communication with other departments
and levels, based on the common language of finance and
a shared understanding of the business
- a decision-making environment that
includes all departments of a business, while using standard
financial tools, concepts and measures.
When people understand
business — when
they understand the impact of their actions and decisions
on the company
— they make better decisions and improve the company's
results and strategic position. Employees will understand
the financial reasons for changes in policy, and become
more supportive of senior management, even in difficult
times. Morale increases, everyone is more productive,
and they take more ownership in the business.
- Hourly employees impact both the
income statement and the balance sheet through everyday
decisions and actions. We show them how they do it,
why they need to strive to keep the company healthy,
and how to improve their performance and decision-making.
- Salespeople learn that the sales
they negotiate have enormous impact throughout the
company; on profit obviously, but also on cash flow,
production, and customer service. They improve their
ability to understand their customers’ needs
and structure win-win sales.
- R&D professionals gain an insight into the finance
department's concerns with time. They write more
thoughtful proposals, which tie up less capital or pay
for themselves more rapidly.
- Production supervisors learn to visualize
the tradeoffs in their daily production scheduling decisions,
and to understand the impact of their inventory and production
decisions on the rest of the company. This allows them
to control costs and inventories more closely.
- Finance personnel increase their ability
to behave proactively. They experience the difficulties
inherent in making operational commitments before the
outcome of their market strategy is known. They also experience
the ‘do or die’ of the market, and learn the
value of rapid, tactical response.
- Managers become better managers. Because they
have a big picture understanding, and see the interconnected
relationships and impacts, they make better plans. Because
they have acquired the language of the finance department,
they write better reports. And because of the shared
understanding of the needs of the business, there is
increased trust and support.
Everyone gains this shared understanding
of the business, this language of finance to explain concerns,
and a mutual respect and team spirit that comes from understanding
other departments.
With common language and shared
understanding, there is increased speed and accuracy of communication. This
provides a crucial competitive advantage in the rapidly
changing business world.
Business Compentencies |
Case Studies |
CFO Benefits |
CLO Benefits
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