Why Finance Matters™

 

Now there’s a way to help your people develop the financial understanding they need to make sound business decisions and drive bottom line results. Even individuals who find “the language of business” a bit intimidating.

It’s Why Finance MattersTM, a new Webbased education offering from BIS affiliated to BTS Company, one of the world’s most trusted names in fi nancial acumen.picture1

Interactive simulations engage the learner 

Why Finance MattersTM engages learners because the instruction is delivered in a story setting complete with colorful characters and full motion video. What’s more, because the learning is Web-based, getting around is a simple matter of point and click.

However, Why Finance MattersTM is much more than mere entertainment. It’s eleven learning modules and associated proficiency exams address every aspect of fi nancial acumen from understanding income statements and balance sheets, to calculating return on investment, to constructing what-if sensitivity work-ups.

wfmIn fact, one highly-regarded Fortune 50 fi rm uses it to train their career financial professionals.

The perfect leadership education.

Use Why Finance MattersTM to equip your leaders with the fi nancial know-how they need to develop business plans and budgets and make decisions that contribute to your organization’s bottom line. Already an integral part of many corporate university leadership development programs, Why Finance MattersTM is also an ideal foundation for executive level case studies and strategic simulations – ensuring that participants of varying fi nancial backgrounds enjoy a level playing fi eld.

Essential for other key populations as well

Imagine if your salespeople were able to cost justify their business proposals based on an intimate understanding of a prospect’s fi nancial situation. Why Finance MattersTM can give them the wherewithal to do so. And for professionals charged with investing in new products and making important technology, and infrastructure commitments, Why Finance MattersTM provides the analytic tools they need to assure your organization and its shareholders receive an acceptable return.

Don’t overlook your support staff.

With Why Finance MattersTM they’ll understand how to optimize the way you manage inventories, collect receivables, process transactions and extend credit to improve your cash fl ow and return on sales. In fact, consider Why Finance MattersTM for any manager or knowledge worker who needs to understand the fi nancial impacts \of their everyday decisions and the ripple effects across other work units.

Incorporate your business financials wfm3in the learning process

All of the case examples in Why Finance MattersTM are easy for learners to grasp and apply to their own work environment. We can also customize the learning experience to include your own organization’s fi nancials as well as terminology and key performance ratios specifi c to your industry, your customers and your competition.

The process is surprisingly quick and easy, and you’ll fi nd our consultants highly adept at understanding your business goals and objectives.

Good news for human resource development executives.

Because Why Finance MattersTM is learneradministered, there’s no need to add to precious classroom time or go to the trouble of fi nding qualifi ed instructors. What’s more, since it’s browser based and delivered totally over the Web, there’s no software to load or technology compatibility issues to deal with. And with secure administrator privileges, monitoring course participation and test results is as easy as point and click.

Finally, because Why Finance MattersTM is totally modular and available to learners 24-7, you may easily incorporate it as a prerequisite, as a just-in-time learning adjunct or as a stand alone course offering.

Eleven Modules Address Every Important Business Finance Topic

Why Finance MattersTM combines hot topics like ROI and Sarbanes Oxley with cutting edge multimedia delivery to provide a comprehensive fi nancial acumen solution. The eleven selfadministered modules may be completed in order or accessed as needed to address specifi c business fi nance challenges.

1: Introduction

  • who employees ultimately work for in any organization
  • what shareholders expect and why meeting those expectations is crucial
  • the role of finance in an organization

2: The Cash Cycle

  • the difference between profit and cash
  • activities that occur in the phases of the cash flow cycle
  • sources of capital for a company and their associated risks and expectations
  • working capital components and the factors that infl uence them
  • how business decisions can impact the cash cycle

3: Types of Financial Reporting

  • the three types of financial reporting: external, internal and tax
  • who uses them
  • how is information organized for each type of reporting

4: The Balance Sheet

  • purpose and structure
  • key components
  • location of key line items
  • how operating decisions impact line items on the balance sheet

5: The Income Statement

  • purpose and structure
  • key components of the income statement
  • location of key line items
  • how operating decisions impact line items on the income statement

6: The Cash flow statement

  • purpose and structure
  • key components
  • tracking cash inflows and outflows
  • the difference between the GAAP cash flow statement and free cash flow

7: Financial Statement Analysis

  • benefits of financial statement analysis
  • employing key ratios to assess efficiency, profitability and capital management
  • components of the return on capital ratio (return on investment)
  • comparing financial performance between companies

8: Cost of Capital

  • what “cost of capital” means
  • risks and expectations of leaders and shareholders

9: Economic Value Added

  • economic value added components
  • why measure EVA
  • how improve your EVA equation

10: Investment Analysis

  • criteria that should be considered when developing an investment proposal
  • steps involved in the investment analysis process
  • components of a discounted cash flow analysis
  • how net present value is used in evaluation investment proposals
  • how to perform a sensitivity analysis of key assumptions
  • how to calculate NPV of economic value added

11: Creating Shareholder Value

  • the relationship between stock price and investor expectations
  • how value is created for shareholders and how that value can be quantified
  • value drivers that employees can affect that impact shareholder value

In addition, Why Finance Matters provides:

  • 36 drill down opportunities to learn more about key financial topics like accelerated depreciation, net present value, and free cash flow
  • A glossary providing lucid definitions of 195 essential fi nancial terms and concepts
  • A case study repository on how leading firms have skillfully employed financial best practices to enhance performance and shareholder value, including:
  • Quaker Oats
  • IBM
  • Target
  • Wal-Mart
  • CSX Corporation
  • Southwest Airlines
  • Hermann Enterprises