In April of this year, Karen Elmirst, our Senior Leadership Analyst spoke with Dr. Karen Berman, Founder, President and Co-owner of The Business Literacy Institute.
Financial Intelligence: Knowing What the Numbers Really Mean
In addition to providing consulting, coaching and speaking on the topic of business literacy, Dr. Berman has co-authored a book entitled: Financial Intelligence, a smart no nonsense business finance handbook for managers.
While completing research for her Ph.D., Dr. Berman found that teaching employees about the business, teaching understanding of how success is measured financially and how they individually contribute; there is a positive impact on the organizations´ bottom line. In addition, Dr. Berman found that "motivation also increased, commitment increased, and turnover decreased and people felt better about where they worked." As she stated in the interview, "By understanding the numbers, people at all levels can make better decisions". Understanding of how the business works financially supports and helps build alignment with strategic business objectives.
Other authors have also written on this topic, including: Scott Cawood, PhD, and Rita V. Bailey, who advocate that being involved in the financial details of a company offers many benefits. Information about their book entitled: Destination Profit: Creating People-Profit Opportunities in Your Organization can be found at: www.destinationprofit.com
How would you describe your employee´s financial and business literacy?
