Financial Literacy for CEOs
CEOs need financial literacy to be at their most effective.
Financial literacy is not being an accountant any more than being a car driver means having the motor mechanics understanding of the internal combustion engine. If the car driver understands what the engine can do for him/her and which levers to pull or pedals to press, then he/she can begin the journey; the financially literate CEO likewise needs financial information of the right quality at his/her finger tips to achieve optimum company performance.
Financial literacy is knowing what numbers really matter most, what levers are available to change the numbers and what to expect of the Finance Director or equivalent in respect of functional competence.
The objective of the workshop is to challenge every member to get more from their financial team:
- We shall explore by way of a ‘question time’ session how much members know about the numbers in their management accounts. Members need to bring their latest management accounts to the meeting and be prepared to share them with the group.
- We shall then look at ‘Cash’, ‘Profitability’ and ‘Competence of the financial team’ in more depth.
- The difference between ‘management accounting’ and ‘statutory accounting’ and the benefit of ‘contribution accounting’. You will practise drawing up your own contribution accounts.
- For all, the need to review their financial team’s purpose and performance with the same thoroughness that goes in to other functional reviews on an annual basis
- For some, the need to rethink how the financial information they need is presented in a radically different way and perhaps by different people.
- For all, a list of ‘do’s and don’ts’ that might be best practice arising from the discussion.
Added April 2017.