Few of us love numbers but we should still learn something from bean counters on how to understand budgets and use financial knowledge to evaluate strategic options. One thing you are likely to find is that investors and senior decision makers will need to justify their actions. That often comes through numbers. Providing good ideas with dollar and cents support leads to programs that are likely to be well received.
Not all things can be easily put into financial numbers but
learning to quantify potential value of various aspects of different initiatives
helps support the return out on value arguments for organizations. For example,
redesigning scheduling hours might improve retention of top talent. One could
study that, quantify the outcomes and convert that into potential savings.
(Hopefully you are also good at reports and PowerPoint
presentations.)
Learning about finance is essential to being a knowledgeable
executive. Much of your work will relate to finance in some way such as balancing
budgets, measuring initiative outcomes, and justifying your decisions. Having
finance knowledge not only helps you understand financial information you are going
to presented with the course of your duties but also help you evaluate your
alternatives in numbers of language senior leaders and investors will
understand.
Let us consider some research into the value of finance
education/knowledge for firms. According to this study, executive finance
education can increase cash flows that impact long-term investments and firm
performance. It helps reduce account receivables and inventories to create some
of that cash flow (Custodio, Mendes, & Metzger, 2020).
It sounds to me like executives should have the basics of
finance down.
The Impact of Financial Education of Executives on Financial Practices of Medium and Large Enterprises
Cláudia Custódio Diogo Mendes Daniel Metzger (2020). The
Impact of Financial Education of Executives on Financial Practices of Medium
and Large Enterprises. Stockholm School of Economics. https://www.hhs.se/globalassets/swedish-house-of-finance/documents/ssrn-id3450851.pdf
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