Financial Intelligence for IT Professionals: What You Really Need to Know About the Numbers

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Harvard Business Press, Apr 7, 2008 - Business & Economics - 296 pages
As an IT manager, you're expected to make key decisions and recommend major investments. And that means understanding your decisions' financial impact on your company. But if you're like many information technology practitioners, you may feel uncomfortable incorporating the financials into your day-to-day work.

Using the groundbreaking formula they introduced in their book Financial Intelligence: A Manager's Guide to Knowing What the Numbers Really Mean, Karen Berman and Joe Knight present the essentials of finance specifically for IT experts.

Drawing on their work training tens of thousands of managers and employees at leading organizations worldwide, the authors illuminate the basics of financial management and measurement and provide hands-on activities for practicing what you are reading. You'll discover:

ˇ Why the assumptions behind financial data matter
ˇ What your company's income statement, balance sheet, and cash flow statement reveal
ˇ How to use ratios to assess your company's financial health
ˇ How to calculate return on IT investments
ˇ Ways to use financial information to support your company's business units and do your own job better
ˇ How to instill financial intelligence throughout your team

Authoritative and accessible, Financial Intelligence for IT Professionals empowers you to "talk numbers" confidently with your boss, colleagues, and direct reports -- and understand how the financials affect your part of the business.
 

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Contents

PART TWO THE MANY PECULIARITIES OF THE INCOME STATEMENT
31
PART THREE THE BALANCE SHEET REVEALS THE MOST
75
PART FOUR CASH IS KING
109
LEARNING WHAT THE NUMBERS ARE REALLY TELLING YOU
141
PART SIX HOW TO CALCULATE AND REALLY UNDERSTAND RETURN ON INVESTMENT
173
WORKING CAPITAL MANAGEMENT
201
PART EIGHT CREATING A FINANCIALLY INTELLIGENT IT DEPARTMENT AND ORGANIZATION
217
Sample Financials
235
Exercises to Build Your Financial IntelligenceIncome Statement Balance Sheet Cash Flow Statement Ratios
239
KimberlyClark and FedEx Financial Statements
267
Notes
275
Acknowledgments
277
Index
281
About the Authors
297
Copyright

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About the author (2008)

Karen Berman and Joe Knight founded the Business Literacy Institute. They train managers at some of America's biggest and best-known companies. John Case has written or collaborated on several successful books. He has also written for Inc., Harvard Business Review, and other business publications.

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