I want to ask a question that Do financial decisions are just taken by financial department ? No. Finance is the heart of business all the activities of the business moves around it.
Financial intelligence is required in all fields of the business. Most decisions taken by various managers/executives are in fact financial decisions.
Sales manager should have awareness about the financials so that she can make decisions about discounts, credit terms etc. A decision as to the levels of stock to be maintained by the stores manager is a financial decision. Marketing manager should know about the product profitability to decide about the marketing campaigns. An HR decision as to the kind of people to recruit as per the business proriorities is also a financial decision. So what is financial intelligence ?
Financial intelligence for business is understanding of how financial success is measured and how they have an impact on the company’s performance.
For example we need to know the difference between profit and cash. Need to know why the balance sheet balances. The numbers neither scare nor mystify us.
Do you know that one of the major reasons of failure of the organization is lack of financial intelligence ? It may sound strange but probability that a company listed in Fortune 100 in 1960is still listed is just 17%.
Greater financial intelligence, we’ve learned, helps people feel more involved and committed. They understand better what they are a part of, what the organization is trying to achieve, and how they affect results. Trust increases, turnover decreases, and financial results improve.
You can join in our programs to enhance financial intelligence in your lives and in your organizations. Well thank you all of you to this micro learning session on “Know, how to grow” brought to you by bizwiz learning.