Want to stand out positively from your peers in a way that furthers your career? Build your financial acumen! Too frequently, aspiring business leaders have not put in the work to understand the numbers. I lead leadership development forums that tackle a variety of topics, and recently we brainstormed quick tips to address this important knowledge gap.

Start with where you are: read your company’s annual report, analyst reports and attend any analyst meetings you can. What are the reports management is reading? Read your clients’ and competitors’ annual reports. Don’t expect to know it all. Just start getting acquainted with the materials. Find someone who can walk you through the numbers. Understand the key financial drivers, and major revenue and expense sources.

Augment this by getting education. Take finance courses, particularly those geared for nonfinancial managers. What do your company, local colleges and business schools, or online sources offer? Read important industry magazines and focus on financial information and trends. Think through the implications of both. Read one of the many introductory books on the market. Text books can be a bit, well, academic. Consider the “Dummies” or “Complete Idiot” series – don’t be proud! Get smart!

Make it personal by regularly monitoring your own budget performance. Incorporate business milestones in your project plans and work. Ask questions and ask for help to improve your budget performance. Spend the time to understand your company’s and department’s sales and profit margins, and their trends. Are they going up, down or static? Why? How do these compare with your competitors?
Use internal resources to build your knowledge and that of your team. Have someone from finance to give a financial update. In our forum, the head of Investor Relations came to one of their team meetings to review key figures and why they are important. The Investor Relations department will have great financial information in a digestible format. And find an internal financial mentor or coach that can explain financial terms and translates them into meaning for you. See how others successfully use and present financial data. Keep your eyes and ears open for new sources and ways of learning. Consider stating to your colleagues that you are focused on building this skill, and demonstrate it when you do.

Once you know the numbers, brand yourself as having financial acumen by effectively communicating it. Present a business case, or return on investment analysis, for any new projects, investments or ideas, whether or not it is required. Be able to quickly and concisely explain your work and projects’ importance in financial terms, and how it equate to the big picture. Develop clear graphics to communicate financial results. Since many don’t have this knowledge that is so necessary for promotions, you will stand out amongst your peers no matter what your level.

What have you learned? What can you share? Send me an email at: mcook@ageos1.com