Learn to read a P&L

One of my clients is in the process of interviewing candidates for a director-level business process improvement role. He spoke to one candidate who had a history of leading successful projects and asked him, "Are you comfortable reading an income statement?"

The candidate said, "No," and lost the job. At least he was honest.

Anyone who works for a company, or wants to work for one, ought to be able to read an income statement, a balance sheet, and a cash flow statement. You don't need to go to business school to learn this.

If you have never really understood financial statements, or you once were a pro and need a refresher, there are plenty good books out there that you can use to teach yourself. One book that is very readable (and even amusing) is Analysis for Financial Management by Robert Higgins.