July 26th, 2026 by Mike Manazir – (4-5 minutes)

The numbers tell a story. Leaders need to learn how to read it.

Building Financial Acumen

Have you ever sat in a meeting and heard people throw around terms like ROI, EBITDA, cash flow, accrual, P&L, and balance sheet?

Everyone around the table nods.

You nod too.

Inside, you are thinking, I hope nobody asks me what that means.

I have been there.

I spent thirty-six years in the Navy. I knew aircraft carriers, naval aviation, sailors, maintenance, risk, and mission. Then I entered the business world.

Different language.

Different scoreboard.

Same leadership responsibility.

As an executive with a Fortune 100 company, I had to learn how the numbers worked. I could not hide behind my Navy career and say, “I’m a leader, not a finance person.”

That would not cut it.

Leaders do not have to become accountants. But they do have to understand enough to make sound decisions.

Financial acumen is learning how money moves through the mission.

Where does our income come from? When is it recognized as revenue? Profit? Bottom line? Top line?

How does money create value? What dilutes that value?

What is most important?

Most of it is common sense and easily understandable. It just comes with terms that make people nervous.

Steve Jobs was known for design and innovation, but Apple still had to make money. Oprah

Winfrey built a media company, but Harpo had to manage budgets and growth. Richard Branson started with instinct and energy, but Virgin still required financial discipline.

They learned.

So can you.

Start with cash flow. Cash flow is money moving in and out. If you cannot pay bills or payroll, the rest of the strategy does not matter much.

Understand profit margin. Revenue is nice. Profit keeps the doors open.

Learn ROI – Return On Investment. If you put money, time, or people into something, what comes back?

Pay attention to debt. Debt can help a business grow, but too much debt limits freedom.

Use budgets and forecasts. A budget is a plan. A forecast is your best look ahead to guide your execution and make critical money-related decisions.

Then teach your team.

If only the senior leader understands the numbers, the team is guessing. When the team understands the score, they make better decisions. They see waste faster. They connect daily work to the health of the organization.

If you don’t already have a finance organization supporting a good Chief Financial Officer, bring in someone who knows finance and ask them to teach.

Buy them lunch.

Ask plain questions.

Read a book with your team. The Great Game of Business is a good one.

Use Investopedia when a term makes you feel stupid. It does not mean you are stupid. It means you are learning a new language.

Make it normal to ask, “What does that mean?”

I would rather have a leader ask a basic question than pretend to understand and make a bad decision or be afraid to make a decision at all.

Learn the language.

Understand the score.

Teach your people.

Then use the numbers to make better decisions in service of the mission.

Lead to Win Principle

You do not need to be a financial expert to lead well, but you do need the humility to learn the numbers.

The Question

Where are you pretending to understand the numbers instead of asking the question that would help you lead better?

Next Week: Great leaders keep learning so they can maintain a competitive edge in a changing world.

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Want more powerful leadership lessons from Mike?​

• Begin leading from the heart: Order Learn How to Lead to Win | The Manazir Maxims | Leadership Study Guide for Manazir Maxims
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Let’s lead to win together,

Mike Manazir
Retired Navy Rear Admiral | Bestselling Author | Keynote Speaker | Executive Coach