Finance for Managers (Harvard Business Essentials) [Paperback]

Harvard Business School Press (Author)

Book Description

ISBN-10: 1578518768 | ISBN-13: 978-1578518760 | Publication Date: January 2, 2003

Harvard Business Essentials are comprehensive, solution-oriented paperbacks for business readers of all levels of experience. Calculating and assessing the overall financial health of the business is an important part of any managerial position. From reading and deciphering financial statements, to understanding net present value, to calculating return on investment, Finance for Managers provides the fundamentals of financial literacy. Easy to use and nontechnical, this helpful guide gives managers the smart advice they need to increase their impact on financial planning, budgeting, and forecasting.

Editorial Reviews

About the Author

Harvard Business Essentials The Reliable Source for Busy Managers The Harvard Business Essentials series is designed to provide comprehensive advice, personal coaching, background information, and guidance on the most relevant topics in business. Drawing on rich content from Harvard Business School Publishing and other sources, these concise guides are carefully crafted to provide a highly practical resource for readers with all levels of experience. To assure quality and accuracy, each volume is closely reviewed by a specialized content adviser from a world class business school. Whether you are a new manager interested in expanding your skills or an experienced executive looking for a personal resource, these solution-oriented books offer reliable answers at your fingertips.

Product Details

• Paperback: 256 pages
• Publisher: Harvard Business Review Press (January 2, 2003)
• Language: English
• ISBN-10: 1578518768
• ISBN-13: 978-1578518760
• Product Dimensions: 9.3 x 6 x 0.6 inches
• Shipping Weight: 8 ounces (View shipping rates and policies)
• Average Customer Review: 3.7 out of 5 stars  See all reviews (15 customer reviews)
• Amazon Best Sellers Rank: #96,256 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

35 of 37 people found the following review helpful:

5.0 out of 5 stars Essential, Yes, and for Many, Invaluable, February 6, 2003

By 

Robert Morris (Dallas, Texas) - See all my reviews
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This review is from: Finance for Managers (Harvard Business Essentials) (Paperback)

This one of the volumes in the new Harvard Business School Essentials Series. Each offers authoritative answers to the most important questions concerning its specific subject. The material in this book is drawn from a variety of sources which include William J. Bruns, Michael J. Roberts, and Robert S. Kaplan as well as Harvard Business School Publishing and Harvard ManageMentor®, an online service. Each volume is indeed "a highly practical resource for readers with all levels of experience" but I think those who have only recently embarked on a business career will derive the greatest benefit.

This volume explains the basic concepts of finance to managers who are not financial managers. As Richard Luecke notes in the Introduction, "Knowing how to finance assets, forecast future cash flows, maintain a budget, determine which operations are profit generators and which are not, and judge the real economic merits of different investment opportunities will help you stay in business and turn a profit." Samuel L. Hayes served as subject advisor to Luecke, writer of this and other books in the Harvard Business School Essentials Series and author or developer of more than 30 other books as well as several dozen articles.

There are ten chapters followed by an Appendix: Activity-Based Budgeting. (More about that material in a moment.) Each chapter is introduced by a list of "Key Topics" to be covered in it. For example, in Chapter 5, the focus is on start-up financing, financing current operations, financing growth, establish a proper match of assets with financing, and typical financing arrangements. Obviously, all of this material may seem basic (if not self-evident) to the experienced financial manager but keep in mind that the material was carefully selected for managers who are not financial managers.

One of the most informative discussions is provided in the Appendix when brief but sufficient attention is given to "Developing Cost Drivers" and more specifically to activity-based budgeting (ABB) and how it differs from activity-based costing (ABC). Less experienced non-financial managers are frequently asked to prepare a report which, more often than not, involves a budget or at least a cost analysis. A basic understanding of ABB and ABC will guide and assist the completion of that task. Whereas ABC starts with the cost of resources, allocates these costs to activities, and then allocates these costs to products and/of services, ABB starts with the planned product or service, estimated sales volume, and mix and comes up with the requisite activities to produce the mix and volume.

Financial managers as well as non-financial managers who supervise other non-financial managers should seriously consider providing copies of this book to those who currently do not understand "how to finance assets, forecast future cash flows, maintain a budget, determine which operations are profit generators and which are not, and judge the real economic merits of different investment opportunities" which will help [their organization] stay in business and turn a profit." Of course, younger executives need not wait for such provision. Published as a paperbound volume and priced attractively, Finance for Managers would be a modest investment for them to make in their own careers.

22 of 23 people found the following review helpful:

4.0 out of 5 stars Nice Overview- Not so nice coverage, September 9, 2004

By 

Monojit Mazumdar (Minneapolis, MN, USA) - See all my reviews
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This review is from: Finance for Managers (Harvard Business Essentials) (Paperback)

I bought this book to rehash some of the necessary and critical financial concepts learnt in school. Objective was to a. Make informed decision with knowledge of some finance terms (like top-line growth) B. Make more familiarity with the standard yet not so frequently used financial tools (like cash flow statement).

The book does reasonably well to fulfill these criterion with and optimal degree of satisfaction. Nice organization, one chapter flows onto next one and examples related to one business entity (fictitious yet realistic) run through. Numerical examples explaining the basic as well as relatively difficult financial concepts are easy to understand and make a good reading.

This trend continues pretty much throughout the book except in few chapters. I would actually point out two chapters where details and flow are not as lucid. The chapters explaining Internal Rate of Return (IRR) and Net Present Value (NPV) (Chapter 9: Time value of Money) and Budgeting process (Chapter 7: Budgeting) lacks the depth even at a conceptual level and does not help the reader to form a clear impression of the topics. I would say it in some cases it presents too less a detail (ex. definition and explanation of IRR) and it some cases it tries to present too much (Budgeting process/type and factors consideration)
Overall a good buy and definitely nice value for money!

11 of 11 people found the following review helpful:

5.0 out of 5 stars Good place to start, September 1, 2005

By 

ReadingForFun (USA) - See all my reviews

This review is from: Finance for Managers (Harvard Business Essentials) (Paperback)

Explains the basics, not so detailed that a novice can't follow it. If you're already a finance manager (as opposed to a manger without a finance background), I suggest something a little more advanced.