FINANCE FOR LCPES

AIESEC GUATEMALA

KEY LEARNING POINTS OF THIS SESSION

• WHY AS LCP/CEO I HAVE TO KNOW FINANCE

• FINANCE REPORTING

• WHAT SHOULD I TRACK ON FINANCE?

• THE CORRECT USE OF FINANCE RESOURCES IN MY LC

• MY NEXT STEPS

2

FINANCE FOR LCPES

WHY AS LCP/CEO I HAVE TO KNOW FINANCE

3

WHY FINANCE?

BEYOND NUMBERS

GLOBAL FINANCE IDENTITY

FLB STRIVES FOR:

4

SUSTAINABLE LEGAL TRANSPARENT EMPOWERED CONNECTED

TO OPERATIONS

NEEDS

• ANALYTHICAL THINKING

• 100 % OVERVIEW

• PRESENTATION SKILLS

• LEADERSHIP

• THE FINANCER ROLE IS NOT BUYING OFFICE MATERIALS, COLLECT INVOICES OR KEEP BOOKS UP-TO-DATE

• THE FINANCER ROLE IS TO ENSURE FINANCIAL AND LEGAL SUSTAINABILITY OF YOUR ENTITIES.

• ENSURE THE RELEVANCE AND SCALABILITY OF YOUR PRODUCTS.

5

6

YOU ARE THE "OWNERS" OF

THE SOCIAL ENTERPRISE CALLED

AIESEC

WHY FINANCE CONNECTED TO OPERATIONS?

WE DO NOT DO FINANCE FOR IT’S OWN SAKE, WE DO IT TO ACHIEVE THE ORGANIZATIONAL GOALS.

REMEMBER: FINANCE MOS ARE MEASURED BY INCOMES OUT OF CORE PROGRAMS, NOT JUST IF

THERE IS MONEY OR NOT.

7

FINANCE FOR LCPES

FINANCE REPORTING

8

ACCOUNTABILITY

• FINANCIAL CONTROL PER ENTITY THE ONLY ONE ACCOUNTABLE TO MCEB (IF YOU DON’T HAVE IT, REQUEST IT TO YOUR FINANCE MANAGER/LCP TO SHARE IT WITH YOU!)

9

INCOMES CONTROL

• THIS IS FILLED BY YOUR F&L MANAGER!

10

AUDIT & TRANSPARENCY

• THE FINANCE CONTROL TOOL IS REVIEWED EVERY FRIDAY!

• IF THERE IS NOT CONGRUENCY BETWEEN REPORTED OR NOT REPORTED AT ALL, THE LOCAL ENTITY WILL NOT RECEIVE INCOMES.

• REMEMBER: AS THE OWNER OF THIS SOCIAL ENTERPRISE, KEEP IT

AS TRANSPARENT AS YOU WOULD LIKE IT TO BE!

– FINANCIAL REPORT (MINIMUN EACH QUARTER)

– REVISION OF PLAN ACCOUMPLISHMENT REGARDING BUDGET PLANNED AND DELIVERED (MONTHLY)

– UPDATE FINANCIAL CONTROL AND COLLECTION OF PAYMENT AND DOCUMENTS (EVERY DAY!)

11

FINANCE FOR LCPES

WHAT SHOULD I TRACK ON FINANCE?

12

REPORTING TOOLS FROM THE MCEB

• CASH FLOW AIESEC GUATEMALA

– EXACT COPY OF WHAT IS OUR BANK ACCOUNT AND WHERE THE MONEY IS GOING: HTTP://BIT.LY/1P2GJJF TRANSPARENCY!

• NATIONAL BUDGET AIESEC GUATEMALA: HTTP://BIT.LY/ZREDNP

• ALL FINANCIAL REPORTS FROM JUNE-SEPT: HTTP://BIT.LY/1TBMPWN

• LEGAL DOCUMENTATION AUDIT FOR LOCAL ENTITIES (FOR OGCDP): HTTP://BIT.LY/1EISNJD

13

WHAT I SHOULD TRACK IN MY LC REGARDING FINANCE

• LC PLAN!!!! (WEEKLY!) • LC BUDGET (MONTHLY!)

• FINANCE PERFORMANCE (MONTHLY!)

• FINANCE CONTROL OF MY LC (WEEKLY!)

14

FINANCE FOR LCPES

THE CORRECT USE OF FINANCE RESOURCES IN MY LC

15

WHEN DO I INVEST?

ASK YOURSELF ALWAYS THIS QUESTION:

THIS INVESTMENT WILL GET ME CLOSER TO OUR ORGANIZATIONAL GOALS? YES

OR NO?

HOW CAN I MEASURE ROI (RETURN OF INVESTMENT)?

SPECIFIC MOS

16

EXAMPLE

• OGX+MKT: INVEST $20 IN FB CAMPAING – MINIMUM ROI OF 500 LEADS FROM FB 50 EPS APPLYING FROM THAT

CAMPAING 30 EPS RE REPRESENTS $4.200 FOR MY LC (MOS!!!!)

• OGX+MKT: INVEST $40 IN CALLS MONTHLY – MINIMUM ROI OF 300 PEOPLE ON OPEN 300 PEOPLE CONTACTED 0

STATUS OPEN 80 EPS APPLYING FROM CLOSE SELLING IN CRM 60 EPS MA REPRESENTS $8.400 FOR MY LC (MOS!!!!)

17

HOW TO INVEST IN MEMBERSHIP

• ACCORDING TO PERSONAL GOALS – SEE WHY A JD IS IMPORTANT!!!

• HOW TO TRACK THEIR PERFOMANCE AND WAY OF R&R – CLEAR KPIS AND MOS IN JD AND WEEKLY/MONTHLY TASKS.

• TEAM MINIMUMS – ENSURE PERFORMANCE AND S&S

• FEE FOR NATIONAL/INTERNATIONAL CONFERENCES – DID THE MEMBER/VP/LCP REACHED +80% ACCORDING TO PLANNED ON

THEIR XP? (YES O NO?)

– IS IT A SMART INVESTMENT ON LONG TERM VISION FOR MY LC?

18

FINANCE FOR LCPES

MY NEXT STEPS

19

WHAT ARE MY NEXT STEPS

• BACKWARDS PLANNING

– OPERATIONAL (CORE X)

– SUPPORT (TM-MKT)

– FINANCIAL (F&L)

• FINANCIAL

– BUDGET (AND ATTACH TO IT!)

– MONTHLY PERFORMANCE REVIEW

• IS IT WORTH THIS AREA? ARE WE EFFICIENT?

20

THANKS! ANY DOUBTS, CONTACT:

GABRIELA ALVAREZ

MCVP F&L 14-15 AIESEC GUATEMALA

GABRIELA.ALVAREZ@AIESEC.NET

21