Knowledge to Knowhow -11

The first certificate program I attended at Harvard in 2005 was on “Financial Management”.

The first certificate program I attended at Harvard in 2005 was on “Financial Management”. In this article, I will try to summarize what I learned there.

I went to school in 2005; A part of me was very sad that I left my 2.5-year-old son with my closest friends and came to Boston, and the other part of me was very proud to be a student on the campus of this cool school, whose name is exciting.

We settled in HBS dormitories and intensive work began. At that time, I buried my son Ege's umbilical cord in the garden of Harvard😂 It has a very funny story, but I can't go into the details. I would just like to convey: he is currently studying in Boston and at a school where he can get a Harvard degree if he chooses 🤩 Let's not say it's superstitious please 😁🙏🏻

Returning to our main topic, what I learned in this training;

Financial management is a very critical aspect of leadership as it involves well managing its financial resources to ensure the financial stability and growth of an organisation. Basics:

1. Planning: To develop and implement a medium and short (annual) financial plan, which is compatible with the company's goals and objectives, and has been prepared by taking into account all internal and external dynamics in great detail. To distribute the total resource fairly and by optimizing for this plan.

2. Reporting: Providing accurate and timely financial information to stakeholders, including board members, management teams, and investors.

3. Risk management: Identifying and assessing potential financial risks and implementing measures to mitigate or manage these risks.

4. Investment management: making informed decisions about investments and capital expenditures, taking into account the company's risk tolerance and financial goals.

5. Cost control: Creating and implementing strategies to reduce costs and increase efficiency, including the use of data and analytics to make informed decisions.

6. Cash management: ensuring that the company has sufficient cash flow to meet its obligations and invest in growth opportunities.

7. Financial analysis: conducting regular financial analysis to assess the company's financial health and identify trends and opportunities for improvement.

When it comes to financial management, mathematical part of it usually thought of, but it's also an extremely strategic subject...

When finance is seen as just math, it becomes very difficult to manage strategy. Because constantly maximizing resources and choosing investments with the highest return can prevent putting eggs in different baskets this time, making it difficult for you to reach your long-term goals and act in accordance with your mission, etc. As in everything, a smart balance and strategic choices are very important.

HBS had a very different understanding of education: case case case… The student was not passive even for a moment 😁I got my certificate and came back after that I had the opportunity to go four more times 👏🏻👏🏻👏🏻I will share them too.

Ps: Photo: The cheerful little one on my home office desk