Fresh business acumen for the Finance Manager

At Andromeda Training, we often jest about our workshops serving as both "Finance for Non-Finance Managers" and "Non-Finance for Finance Managers."

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Bridging the Knowledge Gap

Recently, Nikolai conducted a concise 4-hour "Entrepreneurial Challenge" workshop for a distinguished group, including the CFO, a Controller, and the Director of HR. Post-workshop evaluations revealed insights from non-finance managers such as:

"I will have a better understanding of the financial impact to the organization when selecting and executing strategic opportunities to pursue."

"Need to understand the holistic picture and associate the financial outcome with the application."

"Improve communication with Finance."

"More rigor around ROI, business value, ROIC."

These reflections underscore the enhanced comprehension non-finance managers gain regarding financial implications and strategic decision-making.

Insights for Finance Professionals

Conversely, senior finance managers gleaned significant insights into how the Key Performance Indicators (KPIs) they establish can inadvertently influence decision-making across departments.

Nikolai shares an illustrative anecdote from his teenage years working at a fast-food establishment with a late-night drive-thru during the frigid Green Bay winters. The KPI focused on ensuring each customer was served within one minute. However, during slow business hours, preparing fresh items like fries could exceed this timeframe. To meet the KPI without compromising customer satisfaction, Nikolai resorted to driving his own car through the drive-thru repeatedly, artificially improving the metrics. This story highlights how rigid KPIs can lead to unintended and counterproductive behaviors.

This narrative aligns with our "Australia story," where branches measured solely on sales, then profit, and subsequently Return on Assets (ROA), led to unintended consequences at each stage. Senior finance managers realized the necessity of balancing metrics like ROS, ROA, and Asset Turnover to ensure holistic performance management.

The Value of Holistic Simulations

Effective business simulations enable participants to step back from their routine roles and gain a comprehensive understanding of business operations. This broader perspective fosters improved decision-making, leading to enhanced financial outcomes. At Income|Outcome, our mission is to facilitate better incomes and outcomes for all stakeholders.

For more information on how our workshops can benefit your organization, contact us.

Note: This post references real-world experiences to illustrate the impact of KPIs on organizational behavior.

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