Finance Business Training – Teamwork?
As we know finance is the life blood or any organisation, however it is often thought the finance is something that the accounts department do and many people think that they have no impact on the finances of the organisation.
This is simply wrong, every area of an organisation has an undercurrent of finance. With this thought it is crucial that all teams within the business have a basic understanding of finance and how it fits in to the larger business function. Finance business training provides this understanding across business teams and helps them to improve their awareness of finance within the business.
Many teams simply don’t realise their financial impact on the business, from free coffee through to the workstations they sit at, all have a direct impact on the financial position of the organisation.
Through this potential lack of understanding these teams can often get the wrong impression about some of the higher level decisions being made within the organisation with an end of result of disharmony within the teams.
So many companies often forget to gain the financial buy ins with these times or overlook the lack of understanding or knowledge. This disconnect between financial decision making and planning and the teams reactions and understanding of why some decisions are made can create unwanted tension.
Successful organisations have understood the need to have their teams buy in to financially based decisions and often invest in finance business training at a lower level, delivered across these teams as they have recognised that this reduces tension, creates a more team focussed approach to the whole business and often, these teams come up with great cost saving, budget improvement ideas that higher management haven’t.
This combined and joint approach produces better productivity, easier financial planning and an even more motivated workforce.
We all know that the company would not want to share its deepest financial situations but a general understanding by the teams of how they impact the companies finances is truly beneficial.
This financial understanding can also be referred to as business acumen which is the understanding of what it takes for a business to make money.
It also includes financial literacy, the understanding of the numbers on financial statements, as well as an understanding of the strategies, decisions and actions that impact those numbers.
With financial literacy, you can “read” your company’s income statement. With business acumen, you can “interpret” this same income statement, taking into consideration how your company’s strategies and initiatives impact the numbers.
Think about this comparison: In football, players need to know how the game is scored and how they play the game to change the score. So in business, financial literacy is understanding the “score” (financial statements) and business acumen is understanding how to impact it (strategic actions and decisions).
With improved business acumen within your business, your teams start to ask the right questions instead of creating tension and issues. These questions are not only directed at the business, but at themselves, their departments and their own peers.
Often these questions are focussed around processes improvements, products or service delivery and acquisition
and the current talent within the business which can lead to truly innovative decisions, ideas and actions being put forward to the management teams.
Having your team understand finance and have business acumen helps everyone understand that it’s not enough to ask, “How do we cut costs?” or to say, “We need to increase sales by x percent.”
Digging deeper, employees with higher levels of business acumen ask questions that consider the big-picture impact of potential decisions. They demonstrate the ability to make connections between what they do, every day on the job, and their impact on the bottom line.
Having this knowledge and understanding throughout your teams strengthens your business and creates a positive and reinforced team.
Through the use of finance business training your organisation can reap the rewards indicatedhere, to find out more about how to empower and up skill your teams in their understanding of finance and business acumen click here:
Contact us now and talk to one of our advisers to ask any question you may have about our training.