Karen Berman - Financial Intelligence for HR Professionals: What You Really Need to Know About the Numbers

WeKaren and Joehave been working together for more than ten years. Our partnership began with a chance meeting at a conference and evolved over time into co-ownership of our company, the Business Literacy Institute, and now into coauthorship of the Financial Intelligence books. Over the years, we have met, worked with, and shared experiences with many people who have had an impact on our thinking and our work. This book is a culmination of our education, of our management experiences, of our research, of our partnership, and of all we have learned from our work with thousands of employees, managers, and leaders.

Karen first met John while conducting research for her dissertation. He was, and still is, one of the preeminent experts on open-book management. We kept track of each other through the years and were always interested in each others work. Karen was delighted when John wanted to be a part of this project. He has been an indispensable part of the team.

Many other people have helped make this book a reality. Among them:

• Bo Burlingham, an editor-at-large at Inc. magazine, coauthor (with Jack Stack) of the wonderful books The Great Game of Business and A Stake in the Outcome , and author of Small Giants . Bo graciously shared with us the research and writing on financial fraud that he and Joe had gathered for another project.
• Joe Cornwell and Joe VanDenberg, co-owners of Setpoint along with Joe Knight. (At Setpoint they are referred to simply as the Joes.) Were grateful for their belief in teaching everyone the financials and for their tireless efforts in encouraging everyone at Setpoint to participate actively in the success of the company. Were glad they let us tell some Setpoint stories. We also want to acknowledge Brad Angus (CEO of Setpoint), Clark Carlile, Machel Jackson, Reid Leland, Steve Nuetzman, Roger Thomas, and all the Setpoint employees.

  If you are ever in Utah, you should visit Setpoint; the companys system works, and youll see both financial intelligence and psychic ownership in action. We suspect youll be surprised at the employees depth of understanding of the business and their commitment to its success.

• Our clients at the Business Literacy Institute. Thanks to their commitment to business literacy, we have been able to help spread financial intelligence throughout many organizations. Its impossible to thank them all, but a few who helped us and cheered us on are Dan Leever, Michael Siegmund, Greg Bolingbroke, and Gary St. Pierre of MacDermid Inc.; Shellie Crandall of Brinks Inc.; Mark Boitano, Seema Khan, and Julie Holmes of Granite Construction; Richard ODonnell of GE, Ron Wangerin, and Melinda Del Toro of ViaSat; Heather Ludwig and Beth Dawson of GMAC ResCap; and Winny Ho of The Enterprise University.
• Our colleagues at the Business Literacy Institute. Rochelle Martel is one of those unique financial professionals who is also a fantastic teacher. Cathy Ivancic and Jim Bado are also both experts in the field of financial education, with the added knowledge of employee stock ownership plan organizations. Scott Blackham and Brad Orton round out our facilitator team with their financial expertise. Sharon Maass contribution to BLI includes customized content development, training program facilitation, and communication work; her extensive knowledge and experience along with her energetic and positive attitude are inspiring. Stephanie Wexler is manager of client services; her thoroughness and professionalism keep everything running smoothly. Judy Golove, manager of training development, ensures that all our training programs are of the highest quality. Sam Case conducted the interviews for this book, providing us with key data to share with you.
• The HR folks who agreed to be interviewed for this book: Michael Crist, director of human resources at Colorado Energy Management; Larry Godfrey, assistant dean of the College of Human Resources and Labor Relations at General Motors; Connie Haney, vice president of compensation and benefits at Mentor Graphics Corporation; and John Hofmeister, president of Shell Oil Company. Their insights were invaluable.
• Dave Merrill, the creative artist who illustrates our Money Maps. His ability to take our initial rough ideas and bring them to life is a true talent.
• Jacqueline Murphy and Brian Surette, our editor and assistant editor, and the rest of the team at Harvard Business Press. Thank you.
• Roberta Wolff, who generously gave us her time and energy with an outcome that delighted us all.
• And all the others who have helped us along the way, including Deborah Annes, Bonnie Andrus, Helen and Gene Berman, Kelin Gersick, Larry and Jewel Knight, Daniel Kutt, Marty Lasker, Michael Lee, and the Main Graphics team, Don Mankin, Kimcee McAnally, Alan Miller, Annie Petros, Loren Roberts, Marlin Shelley, Brian Shore, and Mike Thompson. Our heartfelt thanks to all.

The following is a sample set of financials for an imaginary company.