The message from CLOs becomes clearer and clearer. Corporate leaders want to tailor the educational offer to the organization's strategic goals

This is not an easy task. They must ensure that educational and communication initiatives strengthen the company's goals. They need to help employees understand these goals and develop their ability and motivation to access them.

And at the simplest level of alignment, you need to make sure every employee understands that the company is looking for money. This includes understanding how profitability is directed, how to use assets, cash generation, and everyday activities and decisions, including their own impact.

Developing business is essential for business alignment. Consider Southwest Airliner, which was founded in 1971. With a 33-year one-year profitability, the airline is widespread in its highly motivated culture of employee motivation and for its outstanding commitment to customer service. the industry has suffered over the years in southwestern growth, including a number of airlines that merged or reported bankruptcy. Southwest purchases the same aircraft and the same airplane as the other airlines and pays its employees competitive wages and benefits. What is the difference?

Unlike some of its competitors, the Southwest management team includes employees in corporate financial results, explaining what the numbers mean, and more importantly, helping to link people's decisions and actions. The airline represents an open culture that extends to all levels and employees understand their role in delivering great services and maintaining costs.

Of course, there are other factors that contribute to the southwestern success, but it is difficult to ignore the positive impact of an approach that develops every employee's and leadership's business awareness to contribute to the success of the airline. [1] An Educational Challenge

Unlike Southwest, individual actors and leaders have not been trained in large organizations today in many organizations. They pay close attention to their own departments and job responsibilities and can not link the relationship between their activities and the company's success. By multiplying hundreds or even thousands of employees, this lack of understanding – the lack of a real business attitude – means that too many decisions are made and take too many measures that are not in line with business goals

. will training help bridge the knowledge gap? Implementing learning programs for many companies such as Southwest, financial literacy and business experience has made it easier and more effective to communicate financial results to employees. 19659002] It's very easy business sense is the understanding of what an enterprise needs to get money. This includes financial literacy, which is understanding the number of financial statements and understanding the strategies, decisions and actions that affect numbers.

Someone who has financial literacy can "read" the company's income statement. This employee or manager would understand the terminology (revenue, cost of goods sold, gross margin, profit etc.) and numbers (ie the gross margin is equal to the total sales / revenue reduced by the goods sold).

In addition to business conscience, an individual would be able to "interpret" this profit statement, considering how company strategies and initiatives influenced the numbers at certain times

Let's look at a simple comparison: In football this is necessary for players to know [19659006] how to get the game and how to play the game to change the score . Understanding financial literacy in business is the understanding of how "score" (financial statements) and understanding of business understanding (strategic actions and decisions).

has spread through an organization, employees and managers are starting to ask questions. These issues are geared not only to the organization, but also to themselves and their organizational units – questions about processes, products, systems, staff, etc., which can lead to the necessary and innovative decisions and actions

. it's not enough to ask, "How do we reduce costs?" or say "We need to increase sales". Deeper melting, employees with a higher level of business attitudes raise issues that take into account the far-reaching impact of possible choices and show greater performance in linking performance and results.

disappointing operating ratios:

• Have production costs increased? If yes, why?

• Have we changed the prices? If so, how did our margins affect us?

• Are Competitiveness Problems For Our Performance?

• Was there a change in customer demand?

• If your cost per unit increased, can we better control the efficiency of our production or service?

• Is there a way to create a larger amount of product at the same cost?

• Can prices be raised, still value to customers and remain competitive?

When issues are more precise, the right choices can be made

Business Desires

Managers need a high level of business competence at all levels to complete their work. Every day, you make decisions about employees, projects, processes, spending, customers, and more – decisions that ultimately lead to greater organizational outcomes. Leaders who consider these decisions through a county-level obli- gation have limited understanding of how these decisions affect financial results and how they relate to the goals and goals of the organization are working in silos that ultimately can harm the company

. Leaders are often placed in their responsibility due to "technical" expertise. Successful customer service representatives, big sellers, innovative researchers, or respectable IT specialists. They now rely on decision-making, budgets, projects and people. They often do not have financial literacy and no higher perspective on business. Over time, especially when they move up the ladder, they can develop them. Or not.

Organizations need managers who are part of the management group, taking into account their own results and the results of the entire company. That is why more and more organizations have built financial literacy and business attitudes into their leadership competency requirements and introduced integrated business administrator training into curricula.

Business Competence for Employees

Managers need to improve their business life, sometimes organizations question the need for this understanding at the employee level. However, front-line contributors, those who are directly linked to production or customer service, for example, take action every day that have an impact on business results.

View a discounted product sales representative or unfortunate customer service representative or a maintenance person who is experiencing a problem. All of these operations can deter the profit margin, lose good buyers or get rid of security issues. Without knowing that their activity has an impact on the company's result, you may not have the context to consider alternatives.

Many organizations have found that financial literacy and business considerations are not just about leaders. They decided to create a company who understood the deal; who know how the return on assets and the return on investment are counted; who know how much the stock change affects the results and the importance of positive cash flow; who see the relationship between the company's financial success and its own health benefits, 401 (s) plans and so on. In other words, you need people who understand the "business" activity of a business. Jim Collins says, "We have not found any evidence that good-to-good" firms have more or better information than comparators, both groups have virtually identical access to good information, and the key is not the better information, but rather the transfer of information to information that can not be ignored. "

With increasing business competence, managers and employees can better understand the information coupled with their business and business results. The Reality of Today's Business World

Analysts, investors, the media and employees – everyone has access to the company's financial results. Over the past few years, accounting matters have been considerably more emphasized, and senior management is well aware of the need for accurate and timely financial information and employees were much more likely to think about these numbers. "Is my company honest?

Because of the profound understanding and interpretation of financial results, employees can become suspicious and ultimately can be released. Disabled workers have a negative impact on productivity and profit

The CEOs of public companies should therefore ensure so that managers and employees can understand the numbers and trust them in. This means having effective business education and continuous and open communication at the top.

Earlier GE chairman Jack Welch said in his book [19659006] Straight from the stomach "A huge part of the CEO's work … There's nothing more important. "

The Big Picture

We became the nation of new IT and entrepreneurial experts with lifelong operating systems, making it easier for managers and employees to migrate into their own work. it may blur the big picture, ignoring the cumulative effect of excess wealth, may be paying little attention to the goals and responsibilities of the other members, class or class of the other teams.

Organizations involved in the development of business life provide a clearer picture and a general context for staff work while creating an environment that is more likely to break down internal barriers, less waste and less ambivalent. Employees are more involved, understand their role and impact on business results, and are more likely to believe that their efforts are very important. They're more likely to think like a business owner. [1965] They Think Like Owners

To be successful, entrepreneurs must be able to helicopter over the daily problems and see the big picture. They need to understand how business shares fit for profitability and cash flow and should be able to assess the risks and benefits of potential decisions. Best business owners are studying numbers, raises hard questions, analyzes their mistakes and takes decisive steps.

In order to truly understand the business, owners need to understand that this business is money – in other words, how it produces sales, profits and cash . Organically, they know that there are about 19659005 people, process and productivity . Customers are about of satisfaction, loyalty and market share . Finally, any action and any decision taken in this area will affect sales, profits or cash.

When leaders and employees think they are owners, they also look at the big picture, understand how to fit all the pieces and evaluate the risks and rewards. They understand as an owner the company's money, how it stays in business, and how it contributes to success.

The advantages of attracting managers and employees of this type of ownership thinking are obvious. So how can a company develop people's business sense?

Improving Entrepreneurship: Two Stories

Entrepreneurs are usually forced to develop their own business. They have a hands-on relationship with businesses and have to make the decisions as they progress, whether good or bad. Both will learn their mistakes or fail.

It is very different from the leaders and employees of an organization.

They are not involved in all business and make decisions primarily within their own sphere of responsibility. Because relationships are not easy, they have to learn differently.

Books and lectures can help. But business action was developed in the most advanced way. Students should be able to analyze situations, ask questions, talk to other students, respond to options, make mistakes and view their results.

Although there are many ways to implement this experiential learning that reflects reality and allows learners to experiment in a safe environment, one of the best ways. Here are the stories of two companies who have decided to educate students about business simulations. Comcast Cable Communications

The NorthCentral Division of Comcast is one of the nation's largest entertainment and information and communications companies operating in the field of cable television, high-speed Internet and telephone services, so that leaders and employees have the financial skills needed to make the right decisions. The company survey clearly showed this necessity – especially for executives of staff directly related to customers.

For example, if a customer calls a service problem, the frontline staff and controls on the client's account will work to resolve the problem. While this may be the case, Comcast realized that employees who made the decisions do not necessarily understand that a $ 10 loan would ultimately require more than $ 100 in revenue for the company. Likewise, a service technician visits a client's home for $ 50, but the company may have to sell $ 500 to cover the costs.

"The lack of financial consideration among supervisors and employees was largely understandable." says Mark Fortin, Financial Vice President of Comcast NorthCentral Division. "Nearly 75 percent of the company's employees play a role such as call center staff or on-site technicians who are trained to be good at their work, but their background does not usually include the importance of financial literacy." [19659002] Comcast Human Resource Leaders have decided that a fundamental approach to the development of business acumen is needed. This approach, however, must be fast, attractive and work-related. By expanding the already-established Comcast University's driving curriculum, executives have decided to integrate the high-energy, customized learning experience that provides the "basics" and specifically addresses Comcast's terminology, concepts and strategic requirements [19659002] When they participated, students made decisions about products, processes, pricing, etc. And they saw how these decisions influenced financial success. Finally, it became easier for them to be sharper in our daily choices. "The thing that goes to the frontline leaders, field technicians and call center supervisors and executives who are involved with the highest sales costs in our business," says Sophia Alexander, a tertiary curriculum and a metric of the division. "It's as if a bell starts in their minds when they realize what counts for us to look for the money needed for the organization to work."

Participation in student work is not mandatory for supervisors and executives. However, they have written a written expectation to participate in business training and other Comcast University core programs, says Jan Underhill, head of NorthCentral Division's leadership development. This expectation, coupled with the fact that managerial compensation was linked to achieving recently defined financial targets, was still of a high standard.

Senior management support was also an important factor in building interest and awareness of financial literacy. "People sign up is much easier if senior executives like Mark Fortin are strong supporters of the program," says Underhill.

Feedback is loudly positive. On average, for example, Level 1 feedback on discovery-based learning experiences is 4.5 points on a 5-point scale. This means that the program exceeded expectations. Much better, says Sophia Alexander, the curriculum and the measure of the Northern Center division's empirical evidence that the new knowledge and knowledge made a difference. For example:

• Participants' self-assessments show that financial literacy has increased by at least 25 percent as a result of business acumen training.

• After training, the ability of participants to apply basic financial terms and concepts to work has increased by 20 percent.

• Nearly 45 percent of supervisors report that they use their business skills during daily communication between staff and their peers.

"Some people, especially large companies, feel that they have an open checkbook … I'm not the owner of the company, not my problem, someone will pay the bills but in today's environment, in some very big trouble everyone you need to take part in the solution. It helps the whole company, but it also helps the employees, this is to some extent self-preservation. "Comment Fortin. Southwest Airlines

Southwest Airlines is one of the most profitable companies that make business literacy a central element of employee training programs. Every employee has a solid understanding of the new customer and new revenue to the company. Employees also know how losing customers can affect their business.

Elizabeth Bryant, Senior Vice President of Training at Southwest Airlines, said: "Training covers how financial indicators, such as return on assets and various margins, have been defined, so that team leaders, supervisors and all employees know company management to present detailed financial reports and explain the teams where margins may be needed. Driving is deeper into the workforce and staff understands it. "

Bryant added," Since we do not waste the small things because we track every money and every activity, we all know the importance of each cent. The concept of complex interests – for example, how small savings help us by the end of the year and how small amounts of waste can hurt us. "

Consider it a key operatin g metric for airlines – operating cost per seat mile. That's how much it costs an airline to fly a mile at a meeting. All operating costs shall be divided by the total number of miles (total number of miles of all seats flying in that period, regardless of whether or not the passenger is in the seat). Much of the industry has already reached 10 cent or more. Southwest Airlines travel costs about 6.5 cents. The industry at the lowest cost, about 25 years ago, was just over 5 cents.

How do they do it? Of course, there are factors that will lead to success. However, one of the most important influences is the continual business imagination of the southwest. This training ensures that employees know:

• What is the challenge of ensuring continued profitability? profits should never be considered self-evident

• Taking advantage of the good years to prepare for the tough years

• Effects of Individual Actions and Decisions on the Bottom Line

In other words, Southwest provides training that helps employees think like entrepreneurs. This, in turn, produces real results, such as a constant low mileage. When Southwest's learning team decided to implement a business simulation simulation several years ago, it may initially be a cause for concern about how well it is received.

Bryant explained: "Some people, especially financial education, were nervous about the subject. We are a people-oriented company that we do not want people to think that we are now just a financially-oriented company and everyone has financial performance we judge, but the need to train business literacy is another way to make sure every employee has a huge interest. We explained that if you understand what the numbers mean, then you can better understand that your work contributes to the business. "

According to Southwest Airlines, Bryant said there was never a redundancy – a rarity in aviation. The more employees understand the business challenges, the more appreciated the day to day intelligent decisions.

Bryant came to the conclusion that discovery learning techniques work well in Southwestern culture in a robust business simulation,. "Every participant learns they can not do everything individually," Bryant said. "They learn to look at themselves, act and think like an owner, and realize that our efforts and financial results here are not just a career but a cause, but this reason-oriented philosophy is cost-effective, high-quality service that allows our travelers to achieve our success in achieving positive results for individual job opportunities, growth and growth opportunities and constantly thinking innovative ways to improve our business and serve our customers. "

The Classroom Advantage

These two has decided to develop the business leadership of managers and employees through a classroom simulation that is provided by corporate website instructors. While the Internet options were available and, in some cases, used to supplement the training provided by the instructor, they decided that they had significant benefits in managing this topic in a "live" session, where they could use:

• SHARED KNOWLEDGE AND EXPERIENCE: students bring their own perspectives and questions to the session.

• TEAMWORK: Students work together, make decisions and rely on each other as they learn.

• COMPETITIVENESS: Small teams play "with each other" and enjoy a competitive environment.

• BUSINESS SPECIFIC DISCUSSES: Students' common interest in financial and strategic issues in their own company allows a deeper analysis and depth of conversations and a "relationship" between learning simulation and the reality of the organization.

• TEACHING MOTIVATION AND COMFORT: Students who are not happy with the finances find themselves playing games in the comfort of the team environment.

Although there are a number of educational approaches available to organizations, business acumen, classroom based training that combines student groups, can help make learning happen, and make business relationships so prepared that quick action is back can work in the workplace.

Rather than ever, successful companies need to focus on the development of managers and employees in business. These companies will recognize that when people understand the numbers when they understand how organizational units contribute to the company's goals and when they see how their decisions and actions work, they become part of a team rather than an organizational or personal silo. And the critical piece of the solution puzzle will be solved.

In a widespread business, companies have powerful tools – skilled, well-trained and motivated employees. And with this tool, they will be the best positioned companies that succeed.

Source by Raymond D. Green

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