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Finance For Non-Financial Personnel Part 7
Business Driven Finance Insights For Laymen
Valuables Take Away
£ ¥ € ₳ ₨$
The Structure of Finance
For Non-Financial Personnel
educational: free distribution
8 presentations altogether, if you cannot find all the links, kindly email care@3cthinktank.com to request
Part 5
Part 6
Part 7
Part 8
Accounting systems - the systems are not that simple after
all and how your own system integrates to them. Accounting
systems are not IT systems!
Estimation - any activity (you name it) involves estimation,
how can you estimate better? Budget/ Forecast/ Plan.
How the financial data so important to you? Lean & agile.
Valuables take-away - how to work on numbers that
please your boss? What numbers must you always look
at? The hidden financial formula a boss must have.
Decision making - interpret financial information, perform
critical ratios analysis, read different reports, and use
reports for specific needs. Use management accounting
information for your own management needs.
£ ¥ € ₳ ₨$
VALUABLE take-
away
“know how your
actions affect the
financial numbers”
educational: free distribution
£ ¥ € ₳ ₨$
educational: free distribution
You don’t beg
your boss to
climb to the top
You PLEASE HIM!
£ ¥ € ₳ ₨$
educational: free distribution
You need to understand your
BOSS in order to PLEASE HIM!
How to understand your boss?
1. Obtain skills to read his mind
or
2. List typical needs of a boss
note: please email to care@3cthinktank.com for detail of the above 2
methods.
£ ¥ € ₳ ₨$
educational: free distribution
One point in the “A List of
Boss's Typical Needs”
I know what
financial
numbers
will make
the boss
happy And I will act accordingly to
affect those financial numbers
£ ¥ € ₳ ₨$
educational: free distribution
Finance Success Formula
This should be what a boss is looking for in the financial information?
(Free cash flow - capital charge)/ Capital
Employed = Economic Value Added
Find hard to
comprehend?
£ ¥ € ₳ ₨$
educational: free distribution
Finance Success Formula
This should be what a boss is looking for in the financial information?
(Free cash flow - capital charge)/ Capital
Employed = Economic Value Added
Find hard to
comprehend?
Why not
focus on one
first?
£ ¥ € ₳ ₨$
educational: free distribution
Finance Success Formula
This should be what a boss is looking for in the financial information?
(Free cash flow - capital charge)/ Capital
Employed = Economic Value Added
Find hard to
comprehend?
Why not
focus on one
first?
How can
we track
this
everyday?
£ ¥ € ₳ ₨$
educational: free distribution
Financial
information a boss
need to know to
make DECISION
Sales &
profit
made by
per worker
each day
net cash
generated
from per
worker
each day
net cash
generated
at the
company
level each
day Free cash
flow
against
ROCE
each day
Compare
with
target
each day
Where
the
workers
is the key
driver
£ ¥ € ₳ ₨$
educational: free distribution
A Simple Approach Is To Know How You Contribute Today?
In this way, you know how to adjust your activities daily.
How Are You Related?
How your
activities
lead to
sales or
profit?
How
that
lead to
cash
flow?
Can you
trace to
free
cash
flow?
Can you
trace to
cash
conversion?
Profit ≠ Cash
£ ¥ € ₳ ₨$
educational: free distribution
From The Boss’s View Point
Therefore, financial numbers one
of the critical factors to appraise
performance. If an employee is
able to make positive
contribution to the financial
numbers daily, his performance
is obvious and easy to evaluate!
In S/T, some non-financial information may impress the boss.
However in L/T, financial information affects the boss decision
- because it is the most completed business information.
Boss without good financial knowledge may under/ over rely on financial numbers to make wrong decisions.
£ ¥ € ₳ ₨$
● You know how to “Please” and “Not Plead” Boss
● You know the importance to update financial numbers on
a daily basis to ensure timely monitoring
● You know how each activity makes contribution daily
educational: free distribution
Are You On Track?
Look For Next Presentation:
Finance For Non-Financial
Personnel - Part 8
£ ¥ € ₳ ₨$
educational: free distribution
care@3cthinktank.com
3CTT is a management consultant who advise and run projects for holistic business solutions,
usually end-to-end, to improve business and make achievements. They cover all business
functions with unique IT enhancements to increase companies’ competitive advantages,
maximizing revenue, liquidity, & profit while designing highly effective organization.
We had been recognised by many as Trusted Advisor, Growth Driver, Turnaround Expert,
Exceptional Motivator, Strategist, Business Designer, and Dynamic Change Agent
For more information: www.3cthinktank.com
8 presentations altogether, if you cannot find all the links, kindly email care@3cthinktank.com to request
All the 8 presentations are the overview, PLEASE
email us if you like to get more benefits from them.

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Finance for non financial personnel - part 7

  • 1. Finance For Non-Financial Personnel Part 7 Business Driven Finance Insights For Laymen Valuables Take Away
  • 2. £ ¥ € ₳ ₨$ The Structure of Finance For Non-Financial Personnel educational: free distribution 8 presentations altogether, if you cannot find all the links, kindly email care@3cthinktank.com to request Part 5 Part 6 Part 7 Part 8 Accounting systems - the systems are not that simple after all and how your own system integrates to them. Accounting systems are not IT systems! Estimation - any activity (you name it) involves estimation, how can you estimate better? Budget/ Forecast/ Plan. How the financial data so important to you? Lean & agile. Valuables take-away - how to work on numbers that please your boss? What numbers must you always look at? The hidden financial formula a boss must have. Decision making - interpret financial information, perform critical ratios analysis, read different reports, and use reports for specific needs. Use management accounting information for your own management needs.
  • 3. £ ¥ € ₳ ₨$ VALUABLE take- away “know how your actions affect the financial numbers” educational: free distribution
  • 4. £ ¥ € ₳ ₨$ educational: free distribution You don’t beg your boss to climb to the top You PLEASE HIM!
  • 5. £ ¥ € ₳ ₨$ educational: free distribution You need to understand your BOSS in order to PLEASE HIM! How to understand your boss? 1. Obtain skills to read his mind or 2. List typical needs of a boss note: please email to care@3cthinktank.com for detail of the above 2 methods.
  • 6. £ ¥ € ₳ ₨$ educational: free distribution One point in the “A List of Boss's Typical Needs” I know what financial numbers will make the boss happy And I will act accordingly to affect those financial numbers
  • 7. £ ¥ € ₳ ₨$ educational: free distribution Finance Success Formula This should be what a boss is looking for in the financial information? (Free cash flow - capital charge)/ Capital Employed = Economic Value Added Find hard to comprehend?
  • 8. £ ¥ € ₳ ₨$ educational: free distribution Finance Success Formula This should be what a boss is looking for in the financial information? (Free cash flow - capital charge)/ Capital Employed = Economic Value Added Find hard to comprehend? Why not focus on one first?
  • 9. £ ¥ € ₳ ₨$ educational: free distribution Finance Success Formula This should be what a boss is looking for in the financial information? (Free cash flow - capital charge)/ Capital Employed = Economic Value Added Find hard to comprehend? Why not focus on one first? How can we track this everyday?
  • 10. £ ¥ € ₳ ₨$ educational: free distribution Financial information a boss need to know to make DECISION Sales & profit made by per worker each day net cash generated from per worker each day net cash generated at the company level each day Free cash flow against ROCE each day Compare with target each day Where the workers is the key driver
  • 11. £ ¥ € ₳ ₨$ educational: free distribution A Simple Approach Is To Know How You Contribute Today? In this way, you know how to adjust your activities daily. How Are You Related? How your activities lead to sales or profit? How that lead to cash flow? Can you trace to free cash flow? Can you trace to cash conversion? Profit ≠ Cash
  • 12. £ ¥ € ₳ ₨$ educational: free distribution From The Boss’s View Point Therefore, financial numbers one of the critical factors to appraise performance. If an employee is able to make positive contribution to the financial numbers daily, his performance is obvious and easy to evaluate! In S/T, some non-financial information may impress the boss. However in L/T, financial information affects the boss decision - because it is the most completed business information. Boss without good financial knowledge may under/ over rely on financial numbers to make wrong decisions.
  • 13. £ ¥ € ₳ ₨$ ● You know how to “Please” and “Not Plead” Boss ● You know the importance to update financial numbers on a daily basis to ensure timely monitoring ● You know how each activity makes contribution daily educational: free distribution Are You On Track? Look For Next Presentation: Finance For Non-Financial Personnel - Part 8
  • 14. £ ¥ € ₳ ₨$ educational: free distribution care@3cthinktank.com 3CTT is a management consultant who advise and run projects for holistic business solutions, usually end-to-end, to improve business and make achievements. They cover all business functions with unique IT enhancements to increase companies’ competitive advantages, maximizing revenue, liquidity, & profit while designing highly effective organization. We had been recognised by many as Trusted Advisor, Growth Driver, Turnaround Expert, Exceptional Motivator, Strategist, Business Designer, and Dynamic Change Agent For more information: www.3cthinktank.com 8 presentations altogether, if you cannot find all the links, kindly email care@3cthinktank.com to request All the 8 presentations are the overview, PLEASE email us if you like to get more benefits from them.