Learn about key financial and accounting calculations.
- Money is like the blood flowing through…the veins of a business.…Accountants and financial analysts…use a range of calculations to diagnose whether…a business is healthy and whether projects make sense.…In this video, we'll talk about how financial professionals…look at a business, and how these insights…can be useful for you as a project manager.…One way that a business or a project…can be evaluated is based on how much it costs to run.…
And it's often useful to look at the costs…in three specific categories:…OPEX, CAPEX, and COGS.…The operating expenses, OPEX,…are the costs related to running the business…or the project.…The capital expenses, CAPEX,…are the costs for investments in equipment…that you need to buy.…And the cost of goods sold, the COGS,…is how much money you spend to produce…the products you sell.…
Each of these cost buckets, OPEX, CAPEX, and COGS,…tells you something about how efficiently…a business is using its money.…The next set of financial calculations…for us to look at are accounting or finance ratios.…
Instructor Daniel Stanton begins the course by reviewing the key skills highlighted in the Project Management Institute (PMI) Talent Triangle, and explaining how strategy and business management fit into your professional development. Next, he explains how to align your project with the priorities of your organization, and effectively communicate the goals, benefits, and risks of your project to your stakeholders. Then, he walks through the different business functions in an organization, including marketing and sales, supply chain management, human resources, and information technology. To wrap up, Daniel explains how to leverage your business acumen to collaborate effectively with individuals throughout your organization.
Lynda.com is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
- Identify the role of business acumen in the PMI Talent Triangle.
- Recognize that projects are how businesses implement changes.
- Explore the characteristics of a SMART goal.
- List several business benefits of good customer service.
- Identify common financial documents.
- Review common financial analysis methods.
- Recall the three common approaches to continuous process improvement.
- Identify the differences between strategic, tactical, and operational goals.