logo.gif (3095 bytes)header.gif (3707 bytes)

Commercial Awareness

Training your employees to understand your business

Managers naturally expect employees to make commercially sound decisions. A reasonable expectation, but is it realistic?  Unless employees understand how the business works, they are not likely to meet this expectation.

Commercial awareness means the ability to make decisions based on an understanding of how the business works financially. 

Through our program, which is totally hands-on where the key learnings are derived through business simulation, employees are in a better position to make decisions, which enhance the profitability of the business.

As employees increase their commercial awareness, they:

bblue.gif (807 bytes) develop a more commercial, work- focused mindset
bblue.gif (807 bytes) more readily accept the need for performance measurement and KPIs
bblue.gif (807 bytes) become more realistic about their demands for capital investment
bblue.gif (807 bytes) are more responsive to budgets

Learning Objectives

bblue.gif (807 bytes) To familiarise participants with basic financial concepts, such as profit, return on assets, debt, equity and depreciation.
bblue.gif (807 bytes) To enable participants to read and interpret financial documents, such as Profit & Loss Statements, Balance Sheets and Budgets.
bblue.gif (807 bytes) To ensure consistent shared experience and language around commercial and financial matters.
bblue.gif (807 bytes) To enable participants to analyse the commercial impact of their decision-making.


The primary outcome of the Commercial Awareness program is a greater understanding among employees of the financial aspects of the business.

Some of the more specific outcomes achieved through people becoming more financially aware are:

bblue.gif (807 bytes) Understanding of the key cost drivers of the business and how each person's actions on these cost drivers affect the bottom line.
bblue.gif (807 bytes) Ability to differentiate between operating budgets and full cost of services.  This assists with focusing on reducing overheads and operating costs.
bblue.gif (807 bytes) Appreciation of revenue base: who are our customers and what is their contribution to our income and margins.
bblue.gif (807 bytes) Appreciation of the need to make a return based on the capital employed.
bblue.gif (807 bytes) Understanding of how cash flow and hereunder stock, creditors and debtors impact the business.
bblue.gif (807 bytes) Reduction in outstanding accounts and stock.
bblue.gif (807 bytes) Maintenance and improvements in margins.


Below are some examples of our Commercial Awareness modules, which are tailored to suit the client's business.

bblue.gif (807 bytes) Profit - Why is it important, How do we contribute, What are the basics of the P&L.
bblue.gif (807 bytes) Cash Flow - What does it mean to the business, How does what we do impact on stock levels, debtor days and creditors.
bblue.gif (807 bytes) Cost Structure - Direct and indirect costs, Full cost of labour, Cost of capital, Efficient use of assets, Economies of scale, Competitors' cost structure.
bblue.gif (807 bytes) Budgeting - Why is it important, Who inputs what and when, Basics of the balance sheet, Maintaining margins.
bblue.gif (807 bytes) Return on Investment - ROI / ROA - What happens to the money invested in the business, Cost of funds, Asset life, Utilisation of assets, Depreciation, Payback period.
bblue.gif (807 bytes) Shares - Share prices, EPS, Rations, Link to reporting, Share plan, Superannuation.

What next?

If you are interested in more information please give us a call on +61 412 026 909 and ask to speak to one of our consultants. 

Alternatively e-mail us at info@emdgroup.com.au or use the form on our Contact Us page.


Sitemap | Privacy Policy | Disclaimer | 2015 EMD Group