View
20
Download
0
Category
Tags:
Preview:
Citation preview
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
AIESEC United States Inc.Financial Management Training
Day 1Session 1
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Welcome!
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Who am I?
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Key ExpectationsTake Everything MC says with a grain of salt. Experience got us to our position, but our experience are not universal
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Key ExpectationsThis is an action oriented space.
If you have an issue - Solve itIf you have a solution - Do itIf you have an opinion - Voice it
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Key ExpectationsAIESEC US Finance has major issues
You must be the leaders that push us forward.
#FinanceSteeringTeam2015
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
MC 212 MC Beyond MC Rise
Stand Empowered to Deliver
United by Purpose, Dared to Transform
Choose: Greatness
MCF Focuses
Better National Investment Process Optimization Financial Understanding on Levels
Exchange Growth System OptimizationFinance is SEXY (Increasing LCF activity)
Exchange Growth
Taking Finance Fluid (Backoffice Management | Front office decision making)
Increase Transparancy (MC <-> LC)
Intl 2% 0% 10%
National 70% 90% 20%
Local 28% 10% 70%
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Financial Model-The LCPs do support the increased budget for strategic spending and the transfer of MC exchange revenue to the LCs
-LCPs need informed decision (Transparency on all functions)-Misunderstanding among the affiliation
-LCPs feels a maldistribution of the affiliation fee-More needs to be done to make sure everyone understands the model
"Less money to spend"Conference Model-LCPs understands the need for conference model sustainability and beleives that we are making efforts towards it
"More needs to be done"
Current Realities for LCPs(Extracted from NP report to BoD)
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Clean Understanding of the Financial Model
Able to understand and answer questionsAlways on the forefront of our minds when considering investments (MC or LC)
Post Project Review (PPR)
MC SidePost project report: an analysis of the project, stakeholders, KPI, and overall feeling post project
*This is not meant to be a punishment or a deterance from projects, but to foster an ROI culture (from top->down)
LC SideRandomized LC survey: sent to 30% of the affected stakeholders,measuring effectiveness and overall feeling
*This is meant to gauge how the LC is feelinga about the MCBoth reports will be reviewed by MCP, MCVP F, and Project Responsible to plan for next strategic project of that functionOnce finalized and closed, the report will be sent out to the LCPs for transparency
Project Focuses: Giving back to the LCs
MC Expectations
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Ideal State of Mind
"a for-profit business with a philanthropic component"
"AIESEC is the ultimate representation of a not-for-profit that is able to personify financial sustainability"
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Does the idea state sound nice?
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Do you have confidence that MC 1516 can do it?
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
One team can’t do it.
2012 leadership team discussed the same issues we are discussing..
"AIESEC is the ultimate representation of a not-for-profit that is able to
personify financial sustainability"
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
We need everyone on the boat to achieve: greatness
sustainabilityexcellence integrityleadershipdiversityenjoyment in our experiences
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
We have a ton of bottlenecks:Financial ModelEducationCash flowIntacctWave AccountingConferencesMC
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
We can cut all of them, but the problem will still exist
Because none of them are part of the CULTURAL SHIFT we need toachieve: sustainability
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Let’s play a scenario game
Can you identify the issue in the following income statements
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Those are all your LCs
Can you explain each line items?Do you discuss each number with your LCP?Can you explain what happened?If they are investments, what are the ROI?
Do you know where you can get this information?
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
One Team
How are you currently tracking your LC?What is your LCP like?
Why did you join the finance team? Why?
Who should you advise in your LC?
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Jan Feb Mar Apr May Jun
CEO Budgeting (Develop a strategy based on YOY, Forecast, Market Reality)
Weekly meeting with VPF to exam sales report
Quarterly review, refocus and re-budget
Weekly meeting with VPF to review invest-ments for Board Report
Weekly meetings to evaluate whether forecast are made
Half year audit, remove all unnecessary operations
VPF Review prior year for data for LCP
Develop reports and find red spots
Offer advice on re-budgeting using resources
Board Report (Stressful times)
Constant revision of investments (HR+Inno)
Offer audit report
Business Operations
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Jan Feb Mar Apr May Jun
LCP Planning with operation (ICX+OGX)OMG! The MC is so annoying
Team Retreat!! Why are we not doing exchange more :(
Spring Break YO
Fk, Im not making my numbers. What is this affiliation fee again?
Can we get a loan? Can we vote? Fk Im MoA.. (if lucky)
Summer!!!!!!! Summer OP? Eh maybe.
VPF Uhh yeah I think that fits into the budget
Woo RoKS! Omg it’s so expensive, yeah Ill look in to the budget
Spring Break YO
Fk this affiliation fee is killing me
Hey, LCP can you ask the MC for a loan?
Summer!!! Haha I dont have to do Summer OP
I quit...
AIESEC Operations
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
What can we do?
More Exchange?Well yes.
Alternate Revenue?Member EMPOWERMENT!!!!Dey DosLEADBetter MC Team
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Shift AIESEC’s Culture
Exhibit A: NSB
Financial Analyst IFinancial Analyst II
Real Jobs, looks at the business on a larger pictureMakes decisionsOffer advice
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
AIESEC’s Culture
Exhibit B:
[You fill this in]
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Finances is Under-utilizedMC can’t empower them nationally (2 touch points SNC+WNC)We need.....to empower LCPs to feel vulnerable enough to ask for advice...to understand their humility to see the issues beyond membership...to allow the LCPs to ask the tough questions
If as VPF you need set the expectation for your LCP to understand issues, even if they do not understand finance, they need to be aware.
They will use their network
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Finances is Under-utilizedMC can’t empower them nationally (2 touch points SNC+WNC)We need.....to empower LCPs to feel vulnerable enough to ask for advice...to understand their humility to see the issues beyond membership...to allow the LCPs to ask the tough questions
If as VPF you need set the expectation for your LCP to understand issues, even if they do not understand finance, they need to be aware.
They will use their network
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Vice President of Finances
..are not being challenged because no CEO is challenging them
..are not being used because no CEO is asking them critically think about the LC
..are not being developed because there is no urgency
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
If I askAccounts Payable Accounts Receivable Accrual accounting Amortisation Assets Audit
Bad debts Balance sheet Balloon payment Bank reconciliation Bankrupt Benchmark
Bill of sales Bookkeeping Bootstrapping Bottom line Break-even point Budget
capital capital gain Cash Cash flow Chart of accounts Chattel mortgage
Collateral Commercial bill Contingent liability Cost of goods sold Credit Debit
Debt Default Depreciation encumbered equity forecast
Fringe benefits fully drawn advance goodwill gross income hire-purchase IPO
IR SKU Liability Line of credit Margin Net worth
Net profit net income Projections Profit margin R&D Receipt
Refinance rent to buy Repossess Retention of title Return on Investment
Budgeting
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
If I askAccounts Payable Accounts Receivable Accrual accounting Amortisation Assets Audit
Bad debts Balance sheet Balloon payment Rank reconciliation Bankrupt Benchmark
Bill of sales Bookkeeping Bootstrapping Bottom line Break-even point Budget
capital capital gain Cash Cash flow Chart of accounts Chattel mortgage
Collateral Commercial bill Contingent liability Cost of goods sold Credit Debit
Debt Default Depreciation encumbered equity forecast
Fringe benefits fully drawn advance goodwill gross income hire-purchase IPO
IR SKU Liability Line of credit Margin Net worth
Net profit net income Projections Profit margin R&D Receipt
Refinance rent to buy Repossess Retention of title Return on Investment Budgeting
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
A Message to Committee Presidents
All of this could be resolved if we communicate!
Being a President means more than just being inspirationIt is understanding the reality of your LC from all pointsIdentifying the issues before your VP or MC warns you
We need to start from the source of the LC
We need to educate the LCPs
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
Questions
How long do you spend on budgeting?
What can we do now?
SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
“The only history worth a Tinker’s Damn,is the history we make today.”
-Ford
Recommended