It’s tough to communicate abstract topics

Jonathan is an intelligent first year business student who achieves excellent math marks. He also demonstrates an exemplary work ethic.

He has been attending your financial accounting course but cannot get a grip on the concept of accruals. In his mind when cash is used, equity decreases and no amount of explanation seems to work.

Sadly, Jonathan is frustrated and is about to give up the class because he believes that he is just not cut out for business and accounting. You are on the other hand have used every imaginable resource to help him see accruals for what they are.

Just when you thought that your student “got it”….. he failed a test! Do you blame your teaching methods? Was the test too hard? All sorts of thoughts probably cross your mind.

I have taught business literacy for years to math smart engineers, doctors, lawyers and other intelligent professionals who struggle with accounting concepts so I understand how frustrating it can be to communicate difficult or abstract topics.… Read more →

Your accountant presents you with your year-end financial statements and says: “John, I’m pleased to see that your sales have increased from last year but your profits have deteriorated and you are likely going to have a cash flow problem in the very near future”. You are stunned. You respond by saying “but my sales are up, how can my profits be down with no cash in the bank?”

What’s wrong with this scenario?

When you receive your financial statements, you should not be surprised at the results. You should know exactly what your financial situation is every month. Furthermore you should have a solid understanding of the role of a balance sheet, income statement and cash flow statement. Knowledge of these basic skills are crucial just to stay in business, let alone to be successful. Without these basic skills you are more likely to run into serious financial problems.

Do you know that:
1.… Read more →

1. Employees are not held accountable for their budgets
2. Profits are falling, cash flow is a problem resulting in your training budget being cut
3. The corporate culture lacks trust and employees are generally frustrated
4. Employees have a sense of financial “entitlement” and make demands for more compensation (often for less work)
5. There is no incentive plan that drives performance

The root cause of the problem
I joined a unionised vertical manufacturing company that was traditionally profitable but was suffering massive losses. My mandate as president of the company was to restructure the company to make it profitable. The company suffered from all of the above symptoms plus plenty more.

I soon discovered what I believe to be the root cause of the problem.

There was no meaningful and productive communication between the owners and the managers.… Read more →

Do you as an instructor suffer from any or all of these frustrations about your students?

1. They don’t prepare for class
2. It’s like pulling teeth to get students to do their homework
3. Even your brightest students cannot get a grasp on some topics that you deem basic
4. Students seem to forget what they learned from one week to another
5. They rely on their memory but just don’t seem to grasp the principles
6. They don’t see the relevance of the subject matter

There are those students who simply don’t care to learn and no matter what you do, no matter how hard you work to motivate them, they will simply take no interest and will do the bare minimum that it takes to pass. I’m not referring to those students. I’m referring to the students who are willing to work but “just don’t get it” because they are unmotivated or struggle to grasp the logic of various concepts.… Read more →