I have been consulting to management in Canada for over 25 years in the fields of strategic and financial management, with a focus on economic decision support. Either because of lack of training in financial and strategic analysis or simply because functional silos are still prevalent in organizational design, managers are often unable to conceptualize the financial consequences of strategic decisions or determine the strategic consequences of financial decisions. What appears to be a weakness in the backgrounds of non-financial managers is what I call 'Strategic Finance' - I will attempt to identify the deficiencies and how onecan eliminate them.
First, it is important to be able to identify the four decision types all organizations are involved in:
