The Financial Ingredient: Financial Management in the Corporate Strategy Equation
It seems like a principal that is easy to understand; to make corporate decisions you must understand the financial ramifications of the actions that are being taken. How else can you make strategic business decisions; right? You have to consider how the strategic position being taken will affect the company’s financial infrastructure.
While this ideology may be simple to understand it is often ignored (or at the very least undervalued) when company’s are developing their operating strategies. This is not to say that decision-makers don’t consider the financial costs of such decisions, because they might; this is to say that many times they don’t fully under- stand how their financial infrastructure will be affected in the long and short-term as it relates to other factors beyond costs.
When operating strategies are being created, it is incumbent on management to understand how...
Finance training for directors is important as finance is the lifeblood of all organisations. Directors and Executives need financial know how in order to make a difference in their organisation. It has been common practice for many directors to neglect financial information due to their lack of financial understanding.
This can be detrimental to the growth of an organisation. There have been instances where I have noticed directors struggling to contribute in an attempt to understand key financial measures. The effectiveness of decisions is questionable and core components and signals ignored or misunderstood.
There are many financial workshops for directors which focus on board level contribution of directors. I would like to share a few key insights for directors and executives in order to gain the much needed financial training for Directors.
Financial personnel: The first place is obviously to learn within your organisation. You can easily approach your Chief Financial officer...
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