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Lack of Financial Training is Business Time Bomb

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The majority of UK business managers have not received any formal, financial training, new research reveals.

Sixty-eight per cent of the 650 managers quizzed said they have never had any formal training, according to e-learning solutions provider Intellexis.

More than three quarters (76%) of organisations in the Midlands and Wales fail to provide training for their managers, and over 60% of businesses based in London or the North of England offered no formal skills instruction.

The failure to formally train managers was most acutely felt among younger leaders, as 70% of those aged between 18 and 29 suffered a lack of skills guidance.

David Willis, Managing Director of Intellexis, commented: “The lack of financial understanding and skills amongst UK business managers is shocking and presents a potential business time bomb in UK companies.”

He added that these companies were, “Putting their organisations at huge financial risk”.

One Response

  1. Making Business Sense of Finance
    Whilst I am in no doubt that the findings from this research are quite correct, I would suggest that the ‘business time bomb’ is not so much a potential as a reality.
    I work in Europe, Asia and the US with the middle and junior managements of international companies and I know there is a huge demand for this type of training. Unfortunately, senior management, when and if they understand finance, are loath to share the company’s numbers with junior staff. Training departments are remote from actual business so do not understand the need for finance training and, if they do, feel that a good old-fashioned ‘Finance for Non-Financials’, preferably run by an accountant, will meet the demand. It won’t, if the objective is to involve management in the success of the business.
    How many managers, of all levels, understand the difference between profit and cash; how many know their way around a balance sheet; how many would recognise a cash flow statement and understand its importance to the business? And even if they do know, and this is the important question, how many get the opportunity of putting this knowledge to work for their employer?
    Poor decisions are being made every day as a result of this lack of education.
    The research is correct, when will companies wake up to the importance of this training?

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