As the finance lead, you are in a unique position help the whole organization with their own financial literacy. I have heard several leaders in the finance seat get feedback to increase their facetime with the organization, so I want to remind you of the unique opportunity you have to help strengthen the DATA component (remember the EOS® Model) and equip the leaders with knowledge to be more data-driven decision makers.
A few ideas:
- Facilitate the 8 Cash Flow Drivers tool with a group of leaders. If having a co-facilitator would help, let me know and I would be glad to do it.
- Volunteer to come to any L10 to help a team IDS a topic that needs financial input.
- Set up a review rhythm of budgets, capital plans, or anything else you drive in the organization (some of you do all the quoting) with the group of leaders that are impacted by your decisions – to review, listen, and help develop and/or tweak the process so it works better.
Here’s the past post that has a couple of other ideas: http://www.thetrugroup.com/2019/10/eos-for-finance-developing-financial-literacy-in-your-organization/
Contact me if you need more guidance.
This is a note especially for those in the Finance seat.
Remember when we did the cash flow drivers tool?
In my experience, half of my teams roll their eyes like they don’t need it. I can only think of one team who told me there was no/little value in the activity.
My questions to you:
- What is the financial literacy of your leaders?
- What do you do every year and/or with every new hire to continue to build it?
In a past role, I spent five months of my life taking leadership teams through a financial literacy/cash flow activity. It was an 8-hour class, averaging 15 people per class, and I trained over 1,500 people across the US and Mexico. I will never forget when a plant manager told me, in an excited voice, that he finally understood EBITDA! The irony was that was a key metric in his bonus, and he did not really understand it. That experience taught me never to assume financial literacy and how it is such critical knowledge for the front-line leaders to possess so they can understand the CFO and make great business decisions.
Question for 2020: How are you assessing/building financial literacy in your leaders?
I encourage you to do the 8 cash flow drivers with your leaders and find other ways to repeat that learning event in creative ways. I would be glad to help co-facilitate it if that would help, and I have a few other ideas that I have seen work if you are interested.