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Career counseling: Get involved in the “money” side of things

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in Hiring,Human Resources,Leaders & Managers,Management Training,Performance Reviews

Question: My boss has promoted me, and I now manage five people. He wants me to do performance evaluations, but I have no idea what these employees’ salaries are. He feels that I don’t need to get involved in the “money” side of things.

How can I establish my authority if I’m not given sufficient information to manage these people?
Access the financial know-how you need to gain your boss's trust
Answer: It’s difficult (and foolhardy) to separate pay from performance. Apparently your boss doesn’t realize this, so you must convince him. Presumably you’ve already explained this point to him to no avail.

Try researching salary administration issues on your own and then flood your boss with suggestions on how to get the most bang for his buck in hiring and retaining the best people. Your goal is to prove that you’ll make his job easier by taking over “the money side of things.”
No matter what position you hold in your company, nearly every decision you make can be put in financial terms. And with companies stretching every dollar during this recession, it's more important than ever for you to understand how your business's finances affect your job.

Mastering Business Finance — Everything you need to know ... in plain English
Assessing the Bottom Line

Gauge your organization's financial situation yourself. Here are the questions you'll need to answer and the steps you'll need to take:

Part 1. Key financial drivers
  • "What makes us money?"
  • "What costs us money?"
  • "What's our long-term vision?"
  • "What are our key strategies?"
  • "How are we performing?"

Action steps:

  • Review the financial reports.
  • Assess anything unclear about the organization's financial performance.
  • Spend time with your financial people to talk about specific drivers and indicators.

Part 2. KNOWing the business

  • "What functions directly affect our fiscal performance?"
  • "What's the primary role of each functional area?"
  • "How do functional strategies affect our overall performance?"

Action steps:

  • Assess your working knowledge of each functional area.
  • Identify the appropriate subject-matter expert.
  • Schedule an informational interview with each expert.
Mastering Business Finance explains everything you need to know about business finance in easy-to-understand language.

Complete with charts and examples to increase your comprehension, this guide isn't just a how-to, it's also a why-to. You'll learn how to:
    book cover
  • Analyze financial statements
  • Manage fixed assets, inventory and receivables
  • Forecast your business’s cash flow for a whole year
  • Choose between a variable and fixed budget
  • Troubleshoot with ratio analysis
  • Reap extra profit from your budget
  • Identify and distribute hidden costs
  • Coordinate your business plan and budget
  • Use zero-based budgeting effectively
Get Mastering Business Finance now!

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