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Understand the funding needs of the CFO to add one opportunity to the business sales pipeline

The program “Communicating effectively with the CFO - principles” will get you there

Moving from 'Learning' to solving a 'Real Business Issue'

Focus on solving a business issue

Learning returns the highest benefit when it is properly applied to solving real business problems. We recommend the line manager and the employee agree on measurable goals that will address known business issues.

The employee might then need to attend a development program such as this workshop. The objective is not just to attend a workshop, but rather to increase the employee’s business and financial acumen, and as a direct result of this development program, identify and help achieve specific, measurable, value-creating performance goals. To illustrate moving from learning-related goals to performance-related goals, we have prepared the following suggestions, which of course should be modified to meet the specific needs of the line manager and employee.

A business issue is on the table
Manager asks employee to solve the business issue
Training takes place with the issue in mind
Employee focuses on solving the issue
Employee reports outcome

  • Issue needs to be solved asap
  • Employee is unclear how to do that
  • Definition of KPIs to solve the issue
  • Training will be recommended to help solve the issue
  • Maybe a workshop
  • Maybe on-line
  • Employee addresses the issue with the newly acquainted knowledge
  • Employee shares how it was possible to meet the KPIs
  • Issue is solved

Value creating performance

Value-Creating Goal

Thanks to your improved overall finance knowledge, you can better identify the questions that should be asked of a CFO, as well as better anticipate questions that might be asked by a CFO. By understanding and applying ‘corporate finance language’, you will be better able to apply Swiss Re’s capital management services and products to meet the client’s needs, with the ultimate goal to develop one new business opportunity and add it to the sales pipeline.

Suggested application tasks in order to meet the above-mentioned goal

Once you have made an initial needs assessment regarding the financial situation of a selected client and presented your findings to your line manager, you can then discuss your findings with a client executive and have them challenge your conclusions. Once you are comfortable with your findings, liaise with your BD to suggest possible solutions Swiss Re can offer. Produce a pitch document demonstrating the value of the solutions to specific kinds of clients, with the ultimate goal to add one of your ideas into the business pipeline.

Summary

Addressing business issues - in a context of learning - promises to produce impressive ROIs.

When we consider all the benefits and costs, this type of training/development investment creates significant value and provides impressive quantifiable returns, both for the employee and for Swiss Re. Therefore, this approach moves us far beyond "just learning something"; it focuses us on the positive business outcomes by quantifying the expected costs and resulting value creation.

Our Thoughts – the Return on Investment (ROI) Calculation

This activity promises a strong ROI of 185%

The sections below reveal our calculation.

Select each thought (+) to learn more about it.

Quantifiable value: Assume that a unit of total sales goal in the market equates to US$100,000,000 which comprises 1,000 individual opportunities, the value of a new opportunity is imputed at US$100,000 (US$100,000,000/1,000).

We assume that the contribution from each new opportunity could be 10%. The value therefore can be calculated this way: US$100,000 x 10%, which equates to US$10,000 in benefit.

Non-quantifiable value: Besides this measurable value, there are also non-quantitative benefits of this workshop. For example, the value of enhancing finance and business acumen/competencies of the employee, plus the enhancement of work quality, all of which materialize over time.

Assume the cost of participating in the two-day training is US$1,200 which is the Swiss re average cost.

Also assume the opportunity cost for being away from the desk for two days is US$2,800. Further assume one day of work is required to apply the findings and to achieve the above-mentioned performance goal, which adds an additional US$1,400 opportunity cost for not being productive.

Therefore, the total related cost of this learning investment is assumed to be US$5,400 (US$1,200 + US$2,800 + US$1,400).

The ROI in this case equates to a high 185% (US$10,000/US$5,400).

Don’t forget this ROI calculation is not considering the above-mentioned non-quantifiable value.

Additional savings could result since the savings could reoccur in subsequent years and the learnings from the workshop could be applied to other situations. In your own individual case, the numbers may differ, our intention here is to offer an example for creating your own ROI calculations.
Agree on your goal
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