Balance Sheet

We've worked with thousands of employees, managers, and business leaders in America over the years, educating them on the financial side of business. Our philosophy is that once employees understand how financial success is measured and how their actions affect the overall performance of the company, they will perform better. That ability to "understand" is referred to as financial intelligence. Higher financial intelligence, as we all know, makes people feel more connected and committed. People gain a better understanding of what they are a part of, what the organization is attempting to accomplish, and how their actions affect results. Trust grows, turnover falls, and financial results improve. We arrive at this philosophy through a variety of routes. Karen takes an academic approach. Her doctoral dissertation investigated whether sharing financial information and insights from employees and managers improves business performance. (Yes, the answer is yes.) Karen went on to become a financial education expert and founded the Business Literacy Institute to help people learn about finance. Joe has a master's degree in business administration with a finance concentration, but the majority of his financial training experience for organizations has been hands-on. He joined the start-up Setpoint Systems and Setpoint Inc., which manufactures roller coaster systems and factory automation equipment, after working for Ford Motor Corporation and several small companies. He recognized the importance of training for engineers and other employees to understand how the business works as Setpoint's chief financial officer (CFO). Joe joined Karen as a co-owner of the Business Literacy Institute in 2003, and he has since worked as a financial trainer for dozens of businesses. What exactly do we mean when we say "financial intelligence"? It's not a natural talent that you either have or don't have. To be sure, some people are better at math than others, and some legendary figures appear to have financial intuitions beyond our comprehension. But that's not what we're discussing here. For most traders, including ourselves, financial intelligence is simply a set of skills that must and can be learned. People in finance learn these skills early on and can converse with others in specialized language for the rest of their careers. Most (but not all) senior executives have a financial background or have acquired these skills along the way, simply because it is difficult to run a business without understanding finance. What do financial experts have to say? Managers who are not in finance frequently have bad luck. They never acquire these skills and, as a result, are marginalized.