Share on LinkedInTweet about this on TwitterShare on Google+Share on FacebookShare on StumbleUponDigg thisEmail this to someonePrint this page

Financial Management

“Beware of little expenses; a small leak will sink a great ship.” – Benjamin Franklin

Financial Management Overview

Financial management is the use of tools to assess the financial health and progress of the team or company. It includes creation of a culture that insures team members and leaders are excellent stewards of the organization’s resources. Most leaders may not have a financial background, such as an MBA, but are expected to know the financial tools they can use to measure performance and the financial health of the company.

Why Decision Making is Important to a Leader

Leaders are expected to have financial acumen and know how financial numbers are related to business success. Financial management is related to many other competencies, but especially decision making, business development, integrity, and focus on results. Financial management is a tool that is used, not only in these competencies, but also to describe the health of a team, department, or company. Leaders are also responsible for ensuring that team members are good stewards of the company resources that affect the financial health of the organization.

Financial Management
Benefits for the Leader

Knowing how to use financial management information and tools helps the leader in making decisions that effect the operation of the business. Financial tools also help the leader understand how well the team is performing against a prior-developed plan to achieve its goals. Knowing financial management terminology and tools enables the leader to communicate with experts in the financial management of the organization.

Top 3 Coaches Recommendations for Financial Management
  1. Identify three behaviors you will change that will improve your cost/benefit thinking, especially when prioritizing tasks for yourself and others. After identifying these behaviors, develop a plan to implement immediately.
  2. List three ways you and your team can improve the financial impact of the organization. Discuss with your team and implement.
  3. If you are not aware of your organization’s financial reporting processes, discuss with an expert in your organization to learn how the processes work.
Measure and Improve Your Decision Making Skills

Be determined to improve your financial management skills and behaviors. Take the short financial management self-assessment on this page to identify where to improve your financial management skills and behaviors. Then, get more coaches’ recommendations in Chapter 15 of The Leadership Compass: Mapping Your Leadership Direction to help you fine-tune your strategic thinking skills and behaviors.

Related Competencies:

Self-Assessment

Financial Management

Measure your financial management skills and behaviors!

Select your level of agreement with each statement in the self-assessment.
When answering the questions, consider how others might evaluate your financial management skills.

 

Recommended Financial Management Books:

Share on LinkedInTweet about this on TwitterShare on Google+Share on FacebookShare on StumbleUponDigg thisEmail this to someonePrint this page
Time to renew

Renew Newsletter

 

Subscribe for monthly leadership tips:

     - Ways to advance your leadership capability
     - Find solutions to common leadership problems
     - Hear about new leadership resources

You have successfully subscribed. Thank you!