Using Financials
Understanding and using financial information to monitor and optimize the financial health of a budget, project, department, or the organization as a whole.
Level 1 Uses basic financial information.
BEHAVIORS
- Makes entries in straightforward financial records.
- Records costs against standard budget categories.
- Monitors straightforward budgets, reporting over- and under-expenditures.
QUESTIONS
- Describe the methodologies that you have used to assist in controlling budgets.
Probing Questions
* Describe a specific example.
* Describe the process that you followed.
* What control mechanisms did you apply?
* How effective were they? Explain.
- Tell us about a time when you were required to make entries into financial records.
Probing Questions
* What was the situation?
* What kinds of entries did you make?
* How did you ensure accuracy?
* What was the result?
Level 2 Uses financial information in standard applications.
BEHAVIORS
- Prepares straightforward financial summaries.
- Compiles financial information to identify or estimate expenditures, costs and/or revenues for current or planned undertakings (e.g., obtains information to estimate travel costs).
- Tracks costs and expenses to ensure projects stay within budget.
- Explains forecasting and budgeting key performance indicators (KPIs).
QUESTIONS
- Give an example of a time in which you felt that you were successful in preparing straightforward financial summaries.
Probing Questions
* Describe the circumstances.
* Describe your methodology.
* Why do you feel that you were successful in your task?
- Tell us about a time when you needed to collect financial information in order to assist in estimating or documenting expenditures.
Probing Questions
* What situation were you in?
* For what purpose were you collecting financial information?
* What types of financial information did you need to collect?
* How did you ensure the relevance/accuracy of the information you collected?
* How useful did the information you collected to prove to be?
Level 3 Uses financial information to inform decision making.
BEHAVIORS
- Solicits input on financial requirements in order to prioritize these requirements in terms of business plan objectives.
- Uses financial data in making recommendations or decisions. (e.g., compares actual to planned financial results to assess progress/problem areas).
- Uses financial data to build business cases and develop proposals.
- Reads financial statements to understand the basic aspects of an organization’s operation.
- Educates employees on key planning and budgeting concepts.
QUESTIONS
- During the business planning process, it is often necessary to solicit input from others on financial requirements. Describe a time when you were engaged in this kind of activity and how you prioritized these financial requirements in terms of the overall objectives.
Probing Questions
* Describe the situation.
* How did you use the financial information?
* What factors did you take into account?
* What were the results of your actions?
- Tell us about a time when you made a recommendation or decision on how best to address inconsistencies that you identified between planned and actual expenditures.
Probing Questions
* What situation were you in?
* What inconsistencies did you identify and how did you come to identify them?
* What recommendation/decision did you make?
* What was the outcome?
Level 4 Interprets financial information for deep insights.
BEHAVIORS
- Uses information from new financial models/analysis to obtain insights in solving difficult issues (e.g., uses financial data to help reduce long-term risk and improve long-term viability).
- Analyzes large amounts of financial data under tight deadlines in order to identify trends, anomalies, threats, and opportunities.
- Consolidates financial information from different sources to gain new insights that inform strategic decisions.
- Assesses budgets to check alignment with organizational goals.
- Links organizational objectives and strategy for financial operations.
- Makes informed recommendations to resolve forecasting and budgeting issues.
QUESTIONS
- Describe a time when you used financial data in an effort to help reduce long-term risk and/or improve long-term viability. Talk about a specific example of when you did this.
Probing Questions
* Describe the situation and your role in it.
* How did you go about your analysis?
* What financial data did you utilize?
* What was the result of your efforts?
- Describe a time when you had to analyze large amounts of financial data in order to come up with useful information for the organization, such as the identification of trends, anomalies, threats and opportunities.
Probing Questions
* Describe a specific example of when you did this.
* How did you go about your analysis?
* What methodologies did you use?
* What was the result of your analysis?
Level 5 Strategizes with financial information.
BEHAVIORS
- Uses an understanding of the organization’s financial performance as a key input to developing business strategies.
- Assesses different accounting and reporting systems, processes and procedures to recommend changes.
- Develops new or modified models for conducting financial analysis.
- Reviews the organization’s approach to measuring and monitoring financial performance in order to identify areas for improvement.
- Participates in the effort to create strategic or operational plans and budgets for the organization.
QUESTIONS
- Could you give an example of something you did in the area of systems/processes to improve an organization’s financial performance?
Probing Questions
* Describe the situation and your role.
* What were you trying to improve?
* What actions did you take to achieve results?
* What was the outcome?
- Could you give an example of a time when you used financial information when formulating a business strategy?
Probing Questions
* Describe the situation and your role.
* What financial information were you using?
* How did you gather the information?
* How did you use this information in formulating the strategy?
* What were the results?