Develop your financial acumen with a practical understanding of finance and gain the confidence to apply this knowledge in your workplace.
As businesses become more competitive and complex, and engineers move into project or leadership roles, financial know-how is increasingly more important. Engineers need to understand the ‘big picture’ of financial performance, the key levers for influencing financial results, and the consequences of their decisions.
This course will help you develop the financial acuity to make informed decisions that align with your organisation’s financial priorities and objectives. It will also help you to more confidently communicate with executives about financial issues, using the right terminology.
The course uses unique financial models, practical examples, thought-provoking case studies, group discussions, and quizzes to develop your financial acumen.
After completing the course, you’ll be able to:
- define and use financial terminology correctly
- understand balance sheets and income statements
- recognise the critical importance of cashflow
- manage resources more effectively
- evaluate financial issues and performance
- make better decisions by taking financial measures and outcomes into account
- influence financial productivity.
Register now to get 15% off, use the code GET15
EA members get 15% off on selected workshops and training. Not a member? Sign up now
Any questions?
Contact us
7 February - 28 February
2 May - 23 May
This workshop will run over four sessions between the following dates:
7 – 28 February 2023
7, 14, 21, & 28 February, 10am – 12:30pm AEDT
2 – 23 May 2023
2, 9, 16, & 23 May, 10am – 12:30pm AEST
EA members get 15% off on selected workshops and training. Not a member? Sign up now
Any questions?
Contact us
Please register at least two weeks before the scheduled course start date.
We can customise this course for groups of six or more.
You choose the time, place, duration and format.
Find out how we can help you and your team by clicking on the button below to request a quote or calling us directly on +61 3 9321 1700.
Learning outcomes
Financial acumen
- Easily make sense of balance sheets and income statements
- Understand essential financial concepts and terminology
- Understand the interrelationship of key financial variables and metrics
- Understand how managers can and do influence financial performance
- Gain an executive perspective on the financial drivers of a business
Organisational and interpersonal skills
- Consider your organisation’s financial goals and priorities
- Gain confidence in communicating with senior managers, executives and finance staff
- Learn how to ask pertinent questions about financial issues and performance
- Be able to justify proposals and projects from a financial perspective
- Improved decision-making through consideration of multiple effects on financial performance
Is this course for you?
This course suits engineers and project managers who seek to gain a strong understanding of the fundamentals of finance from an executive perspective. Prior knowledge of accounting and finance is not required.
There are no prerequisites for this course.
Topics we'll cover
1) The Window Model of Business (Virtual Workshop)
- Financial jargon (concepts and principles)
- How the assets of a business are funded
- Types of assets, liabilities, and expenses
- Three equations that underpin the financials
- Relationship of three essential financial statements
- Effect of retained profit on equity and assets
- How a business can go bust showing a profit
- Two financial success criteria in any business
2) Window Model Thinking (Self-paced Learning)
- Practice exercises to reinforce Workshop 1.
- The essence of accrual accounting
- Recognition of revenue and expenses
- The real meaning of profit and its relevance
- Cash flow vs. profit (and why it matters)
- Accrual of revenues and expenses
- Effects of asset losses and write-offs
- Credit purchases and customer prepayments
3) The Profit Creation Cycle (Virtual Workshop)
- Three fundamental components of profit creation
- The meaning and effects of financial leverage
- The DuPont equation and the profit creation cycle
- Three ‘lever’s for managing return on equity (ROE)
- The crucial role of asset management and ‘profit velocity’
- Multiple levels of profit (and associated terminology)
- Common-size statements and ‘fast financial analysis’
- Financial analysis of two engineering-led companies
4) Funds Employed and the ROFE Equation (Self-paced Learning)
- Practice exercises to reinforce Workshop 2
- The relevance and calculation of funds employed
- Two key sources of ‘free money’ to fund assets
- Return on funds employed (ROFE) and profit creation
- Comparison of the DuPont and ROFE equations
- Three ‘levers’ operational managers can influence
- The drivers and importance of Return on Assets (ROA)
- Financial analysis of two more engineering-led companies
5) Financial Acumen and the ROFE Model (Virtual Workshop)
- The basic financial responsibilities of every manager
- Financial ratios influenced by using the ROFE model
- The need to ‘sweat assets’ and optimise free money
- Relationship of the ROFE model to cash flow drivers
- Core and swing factors that influence operating cash flow
- Using the ROFE Model for better decision-making
- Case study of an Australian financial success story
- Case study of an engineering-led company in financial distress
The program is implemented in four phases, using the Ready-Set-Go-Show framework developed by facilitator Geoff Rip. These phases will help you to gain maximum benefits and value from the program:
READY: This phase will help you to prime your brain and prepare for the following three phases.
SET: Includes three virtual (live online via zoom) sessions of 2.5 hours each plus two self-paced learning modules of approximately 1 hour.
GO: Competence and mastery can only be achieved thorough on-the-job application and practice. This phase will help you to (a) remember and better recall what you learned in the SET Phase, and (b) successfully apply your learning in the workplace and use it to boost your financial acumen.
SHOW: Consists of a 1.5 hour virtual workshop. You get to hear how other participants have applied, or intend to apply, their learning. And you get to share your own successes and/or opportunities for application.
Towards chartered
Take this course to build skills and knowledge in the following Engineers Australia Chartered status competencies*:
6. Identify, assess and manage risks
9. Performance
Learn more about Chartered Status.
*Completing this course does not automatically guarantee you a competency. However, you will gain the base knowledge you need to develop these specific Chartered competencies.
Geoff Rip is a learning strategy and design consultant with more than 20 years' experience in Australia and overseas. He has a Bachelor of Business Science (Hons) and an MBA degree, and he specialises in organisation development.
Geoff has designed and delivered financial acumen courses for Australian organisations across all business sectors, including many blue-chip commercial companies. His programs help non-financial staff at all levels quickly and easily learn the financial fundamentals using specifically developed models.
Geoff is an engaging facilitator who believes that learning should be stimulating and enjoyable.
I could not fault this course. Geoff delivered everything I was looking for and then some. His written material and verbal presentations were engaging and informative. I left with confidence that I can now understand enough of the financial aspects of business to make a difference. Thank you, Geoff!
I found the content very well matched to my needs and Geoff's approach to engaging participants ensured maximum engagement and gave me a very good chance of retaining knowledge of the topic.