A Strong Understanding of Financial Concepts as a Prerequisite for Better Managerial Decision-Making
Did you know that, according to Gallup – an American analytics and advisory company, only 18% of managers have the talent required for their roles? A large majority are hired and promoted due to other factors such as seniority, merit and non-managerial job experience.
This means that a significant section of the workforce, particularly those in charge of making important decisions regarding business operations, do not have all the necessary know-how when it comes to the business process. The truth of the matter is that every department is in some capacity linked to finances. Most business decisions rely on knowing and thoroughly understanding your company’s financial situation.
If a manager, regardless of which department or division they oversee, lacks this type of experience they could end up making the wrong call and costing the company significant losses.
To avoid such scenarios, it is crucial to ensure that managers have well rounded and all encapsulating skillsets which not only include their department related skills, but business essentials such as financial literacy.
When a manager has a strong understanding of financial concepts, they become more confident in their decision-making skills, as they have the necessary knowledge to grasp the situation and act accordingly. They are able to make decisions more efficiently and effectively, thus making them self-sufficient leaders.
A person working as a manager and/or executive will regularly encounter challenges related to finance, regardless of their duties. When they come face to face with these situations it is crucial to at least have a base level understanding of the financial jargon. “Thinking with numbers” is a must have capability for anyone in the business world.
This is the reason why we at M6 Educational Centre offer a training course aimed to prepare managers for these exact scenarios. Our course “Finance for Non-Finance Executives” is developed for senior business executives in Macedonia who frequently work with financial executives and who need to develop an understanding of finance and accounting for their professional development.
Learn more about our course here.