Financial Literacy: Your Team’s Competitive Edge

Lately I’ve been thinking about Financial Literacy. It has come up a lot in the conversations I’ve been having over the last couple of months.

Why is Financial Literacy important for organisations?

When non-finance managers understand their numbers, they can own them. And make good decisions. When finance teams cultivate curiosity and capture context for their stakeholders, they become trusted advisors. It’s like having a mini-CFO at every table.

When your Finance and Non-Finance teams speak a common language, they can learn from each other. Any potential silos are broken down, leading to greater collaboration. And better business outcomes.

Microsoft CFO, Amy Hood had this to say about the importance of financial literacy:

“Six years ago, we rewarded people in finance for how much they knew, how many numbers they memorized and how quickly they could answer a question. What you want to focus on is how available that information was to all of the people who needed to make great decisions. It’s about literally levelling the playing field for impact”

How can I improve my Financial Literacy when I don’t like numbers?

If this question is front of mind for you, you might like to start by looking for a finance colleague who you could have one on one sessions with. Here is an article from the Harvard Business Review that may be useful. Have a read of the section “Find a financial mentor”.

When you think about Financial Literacy…

What excites you?

What challenges you?

What would you like to learn more about?

I’d love to hear from you.

Robert