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 workshop helps participants to be more effective in interpreting financial priorities, using the language of finance, communicating with financial people, incorporating financial principles in decision making, and managing financial resources.
The workshop includes a combination of virtual (live online via zoom) sessions and self-paced learning, providing participants with more content than what can be easily covered in the standard program.
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
- understand the interrelationship of key financial variables and metrics
- make better decisions by taking financial measures and outcomes into account
- influence financial productivity.
EA members get 15% off on selected workshops and training. Not a member? Sign up now
This workshop will be delivered on 27 April, 30 April and 4 May between 9am – 11.30am AEST, with a check in session on 25 May, 9am – 10.30am AEST.
RSVP: 11:59pm, Sunday 18 April.
EA members get 15% off on selected workshops and training. Not a member? Sign up now
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
Financial fundamentals
- Financial jargon
- The ‘Window Model’ of a business
- How the assets of a business are funded
- The fundamental accounting equation
- Relationship of income statements and balance sheets
- How a business can go bust showing a profit
- Types of assets, liabilities and expenses
Profit vs cashflow
- The real meaning of profit
- The essence of accrual accounting
- Cash flow vs. profit (and why it matters)
- The fundamental accounting equation
Review of financial statements
- See financial concepts in a real-world context
- Practice using the Window Model
Financial leverage
- Three basic measures of financial leverage and risk
- A unique model linking financial leverage and returns
- Interactive exercise to calculate financial leverage for case studies
Return on investment
- Four key measures of return on investment (ROI)
- Return on Equity (ROE) Drivers Model
- Three key drivers of return on funds employed and ROE
- Predictability of results
Managing Return on Funds Employed (ROFE)
- The financial responsibilities of every manager
- Key variables for managing return on funds employed
- The importance of optimising ‘free funding’
- Good vs. bad costs (why cost cutting can be harmful)
- The relationship of project and corporate financial results
Operating cycle and cash
- Components of the operating and cash cycles
- Three types of cash flow and their relevance
- Ways of increasing operating cash flow
Final case studies
- Reflect on and practice the concepts learned using case studies
The program is implemented in four phases, using the Ready-Set-Go-Show framework developed by facilitator Geoff Rip. Each of the phases has a number of ‘success factors’ that are crucial to delivering value to participants and ensuring program effectiveness:
READY: This phase helps the participants prepare for the following phases.
SET: It includes a combination of virtual (live online via zoom) sessions and self-paced learning.
GO: Competence and mastery can only be achieved thorough on-the-job application and practice. This phase helps participants to (a) remember and better recall what they learned in the SET Phase, and (b) successfully apply their learning in the workplace and use it as a powerful learning experience.
SHOW: Participants share what they gained from the previous phases.
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.
Excellent course that every engineer would benefit from in understanding how their work affects business. Geoff has a depth of knowledge that is practical and applicable to the workplace.
So far this is the best course I have ever attended. Most useful aspects of the course were learning how to use the information to make day-to-day decisions from a balance sheet and P&L statement.