Today’s blog post is Strategy #21 in our ongoing series on specific ideas to develop your staff as the current and future leaders in your organization. And it is: regularly discuss and explain your financial results.
Discuss and explain your financial results regularly
If you are going to develop your staff as the future of your organization, then they need to understand the numbers. Where are your revenues coming from? What are you spending on? How much do you pay in taxes? And what is left over for profit? Even if you are a not-for-profit entity, your people still need to know what your funding sources are, where the funds are being spent, and whether and how you are in a surplus or deficit position. If you are going to grow and develop your staff, then they need to be financially literate; they need to know about the dollars and cents. And one of the best ways to build this financial literacy in your people is to regularly discuss and explain your financial results.
Do three things to develop your staff in financial literacy
At minimum, to develop your staff in financial literacy, you should be doing three things. First, share your organization’s and department’s financial results monthly. Now don’t just mass-distribute the financial statements; most people find them overwhelming and they’ll likely get ignored. Instead give your staff simplified versions that report just on your company’s critical numbers. Continue reading