Understanding financial numbers and how to interpret them will give you a snapshot of things to come. For example, if your company missed their profit last quarter, you should anticipate an increased focus on expense reduction in subsequent quarters. This may mean tighter restrictions on company travel, which could require justification for your team members’ business trips. If your company missed its revenue targets for the first half of their fiscal year, this may mean a hiring freeze in the second half, stronger emphasis on driving more sales, more scrutiny on expenses, cost management, shifts in investment areas or a delay in projects.
If you understand these financial conditions, you can plan ahead and lead your team to innovation and creative solutions. For example, you may challenge your team to think of what each person can do to be more efficient. Can processes and procedures be streamlined to save time? Are there any cost-savings initiatives that can be started or LSS Lean Sig Sigma projects? Everyone needs to understand the financial impact you all have on your company. Can you turn projects around faster to help the sales organization?
The bottom line is that learning the language of finance will have an impact on your potential for promotions. It’s a must-have skill. Taking a course in finance will pay significant, long-term dividends.
Nellie C. Scott is director, services sales support and enablement for Lenovo.
