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on your tablet to read when you are traveling. Join or form an executive networking group. Get their
take on the economy and what is happening in their industries. Talk to other executives. Engage your
CFO or CEO in a broad conversation about the business. Build out your sources of information so
that you have a pulse on the different levers that drive business. Challenge yourself to explore a new
idea every month.

4. Emotional about decisions? Ground yourself in data. Depending on the issue, you may feel very
strongly about the outcome. Or maybe there is a great deal at stake and the wrong decision could
have serious consequences. Emotions fuel our passion. They provide energy for decisions. But we
can’t operate on emotion alone. Numbers aren’t everything but they are a good way to stay grounded
when tough decisions are needed. Acknowledge feelings, then turn to the numbers. Pull together a
team to share the decision making. Get your CFO or financial analyst involved. Ask: What can good
financial modeling tell us about the future? What does accounting tell us about the past? What is at
risk? Based on these facts, how do we make the best decision—now—to assure the long-term
prosperity of the organization? Make your decision only after you consider all sides of the equation.

Want to learn more? Take a deep dive…

Berman, K., & Knight, J. (2009, October 7). The dismal financial IQ of US managers. Harvard
Business Review Blog Network.
Campbell, D. H. (2011, July 26). Financial literacy is every business’s responsibility. Forbes.
Mind Tools. (n.d.). Understanding accounts: Basic finance for non-financial managers. Mind Tools.
Schulman, N. H. (2013, March). Use your financial data to make business decisions. Citibank.

5. Overwhelmed by data? Select and focus on a few key metrics. Finance deals with all aspects of
the organization—revenues, costs, taxes, losses, profits, market projections, investment analysis. It
provides historical data. Forecasts and projections. Accounting for cost control. Analysis to
understand customer trends. It deals with macroeconomics and specific quarterly variables. To make
wise financial decisions, you need to start with good information. Data to create a credible picture that
you can act on. Look for three to five key metrics you can use as the bellwether data point for your
planning and decision making. What is the key factor that will drive the situation? What numbers
provide a green light or signal caution? Bring the data into context. Is the organization focused on
reducing expenses? Expanding service? Supporting growth? Are you concerned about financial
outcomes compared to forecasts? Run your numbers past some colleagues—especially in finance—
and ask if they agree with your assumptions. Understanding how these numbers promote or hinder
future financial performance will allow you to make strong strategic and tactical decisions.

6. Make spending decisions? Proceed wisely. Whether you’re developing a five-figure project budget
or just submitting an expense report, it’s easy to lose perspective on the money. You may see
yourself in a tug of war to secure resources. You may feel constrained by controls that you don’t
agree with. Wise spending balances short-term needs with long-term effects. If you’re writing a
budget, understand the full picture, then drill down into the details. Look for savings in equipment,
travel, or staff that can be more wisely spent in another area. Set policies that meet goals while
protecting funds. Review expense reports to keep expenditures under control. Review vendor

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