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One of the biggest disconnects between early-career employees and management is what is assumed and accepted as the drivers of value in the business. While management and board members are primarily concerned with delivering value to investors and shareholders and executing a long-term vision for success, the reasons behind their decisions are The rest of the process may only sometimes be apparent to employees, especially in their early years.
Regardless of your position within a company, it’s essential to understand the reasoning behind business decisions, how goals are set, and the metrics that show progress toward them. This knowledge helps shape your deliverables in the right context and keeps your approach flexible. Being able to proactively adjust your work to the company’s changing priorities will help you stand out among your peers. Additionally, you can improve your overall business acumen by challenging yourself to think like a leader or executive team member. While some may have the opportunity to attend business school to develop these skills, there are many resources available to help you stay on top of the latest business trends. Whether you’ve attended business school or not, you can stay informed and knowledgeable by continuing to read the recommended books below.
activist letter
These are letters that activist investors write to demand specific changes from management to improve the value of the company. These letters are typically a well-articulated, concise argument from an outside perspective when investors believe management is losing value or missing an opportunity. However, some of these letters may have ulterior motives, such as shorting the company’s stock, so it’s important not to take their recommendations at face value. Nevertheless, they are a great way to understand the dynamics between investors, board members, and management. It can also provide early indicators of goal changes and executive and board appointments. These letters are often public and can be found with a simple search (e.g. here and here).
Quarterly earnings and annual reports (and transcripts)
Understanding a company’s financial health is critical for aspiring business leaders, regardless of field or role. To feel more confident talking about a company’s financial health, start by taking an introductory course on how to read financial statements. You don’t need to be a professional accountant, but you should strive to be able to read the three basic financial statements. Additionally, reading quarterly earnings reports and annual reports of publicly traded companies can help you practice becoming more fluent in financial terminology (published on the company’s website). For further insight, review the earnings call record and hear how management describes the health of the company’s outlook and priorities. With practice, you’ll soon be able to talk about your company’s financials with confidence.
business case
Especially when running a business, it is more effective to learn from the experiences of others than to learn by practicing or reading theory. Business cases are a valuable and concise resource for learning how businesses succeed and fail. Harvard Business Publishing says: “Case studies are a powerful teaching tool for building the confidence and critical thinking students need to boldly take their own positions and express their ideas persuasively.” That’s why business schools Many of our acclaimed teachers devote their time and expertise to writing and actively applying it in the classroom. Find or purchase cases for companies and industries that interest you online for free.
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