Connect the dots from statements to actionable insights
Posted on September 12, 2016
By Joanne Goveas
The face of leadership has changed dramatically over the past few years. Today, executives and directors need to have a high level of financial literacy in order to better fulfill their leadership mandate. But what does that look like, exactly?
Successful leaders can navigate between strategy and operations using financial statements and ratios. They have a context for financial information that lets them build a framework of strategic thinking based on solid financial measures, but in order to get there, they need to already speak the language.
You can’t ask the right questions if you don’t know what those questions are. It’s the difference between seeing the dots and being able to connect them.
And it’s not just reading and interpreting charts and graphs. Successful leaders need to fully understand the roles and responsibilities of the audit committee, management, and auditors in the reporting process: how they interact and what their priorities will be. How do the financials impact the strategic objectives of different business units as well as the organization as a whole? When you develop the ability to connect strategy and operations, you can truly begin to maximize value for your organization.
Proper analysis of financial data guides leaders in their decision making, helps ensure due diligence, and have an immediate impact on their organization and in the boardroom.
You can build and develop your financial literacy skills this fall at Rotman’s Financial Literacy program. Apply now.