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January 12, 2006

News & Opinion: Why Do We Need ANOTHER Finance Book?

By: 800-CEO-READ @ 6:26 PM – Filed under: Current Events & Public Affairs

So, why did we write this book? There are a few reasons, but first and foremost, because we are true believers in what we call business literacy. We believe that everyone in organizations should understand how financial success is measured and how they make an impact. Joe comes from a more operational perspective, seeing first hand how when everyone understands the numbers, better decisions are made and the business is more successful. Karen comes from more of organization development perspective, seeing the qualitative benefits of business literacy trust improves and motivation and commitment improve because you are treating everyone as an important part of the businesses success. So, we wanted to share our passion.
The second reason is that we felt there wasn't a book out there that was targeted directly at managers. Our firm, the Business Literacy Institute, received calls all the time asking for a recommendation for a book that a manager could read to learn about the financial side of the business. And we never found one that we loved. Some are written by accountants, and so, of course, come from that perspective. Others are focused too broadly, including general business issues as well as finance topics.
Finally, we wanted to share a key element of finance that we felt was not broadly understood, that is, that finance is an art as well as a science. So many times in organizations the accounting and finance professionals present the financial results as hard numbers, true facts, and indisputable. The fact of the matter is many numbers in financial reports are based on estimates and assumptions.