How well do you understand your organization’s finances and financial drivers of performance?

Our reader poll today asks: How well do you understand your organization’s finances and financial drivers of performance?

• Extremely — I know our finances inside and out – 22%

• Very — I know the major financial performance drivers and metrics – 49%

• Somewhat — I know a couple of key drivers but not much more – 17%

• Not very — I know profit matters but beyond that, I’m lost – 7%

• Not at all — I am completely in the dark on our finances – 4%

Know Your Numbers. 71% of you report having a solid grasp of the financial drivers behind your organization’s performance. Well done. Knowing how your business works from a finance perspective accelerates your ability to improve performance, diagnose problems, and prioritize your efforts on the most impactful work. If you’re in the 29% that is less familiar with your organization’s financial drivers, it’s a worthwhile time investment to learn how the company works financially. Meet with a colleague in the finance department and have them walk you through key reports and metrics. Ask them to explain how the numbers work and which areas of the business impact which numbers. Financial literacy will only serve to make you a more effective leader.

– Mike Figliuolo at thoughtLEADERS, LLC

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These results were originally a SmartPulse poll in SmartBrief on Leadership which tracks feedback from more than 240,000 business leaders. Get smarter on leadership and sign up for the SmartBrief on Leadership e-newsletter.