#54: The number one skill you need to master to reach C-level potential
Spoiler alert: it's not a soft skill
Hey friends,
Welcome to the 54th edition of the “Level Up Ladder” newsletter.
1/ Some updates from my side
It was cold and rainy in Bucharest for the last few days, and I had classes last weekend, so I didn’t do many interesting things.
We have a short vacation next week because of Orthodox Easter, and we’re going away, so I spent most of my mornings working on my MBA assignments. So that I can enjoy a few days off while we’re away.
As we’re traveling soon, I’ll be back with some exciting stories (and photos) next week.
2/ The number one skill you need
Last week, we had the first weekend on “Corporate Strategy.” and I realized something I wish I hadn’t:
You must know finance. And some accounting, too.
But mostly finance.
I know, I know, everyone on LinkedIn is talking about servant leadership, communication, and coaching your people. These are very important, but if you want to break into upper management, unfortunately, they are not enough.
Finance is crucial to understanding how your business works.
Imagine stepping into a high-stakes meeting, armed not just with your usual expertise but with a solid knowledge of financial strategies that could save your department thousands or millions of dollars.
That's the power of understanding finance in today’s competitive career landscape—where the leaders aren’t just made, they're financially savvy.
Many ambitious professionals excel in their specialized roles but overlook the universal language of business—finance. This gap often becomes a roadblock in climbing the corporate ladder and in making impactful decisions.
Without a solid grasp of financial principles, you may find yourself repeatedly passed over for promotions, unable to influence key stakeholders, or worse, making uninformed decisions that could jeopardize your projects or your job.
Think of finance as the engine of a car; no matter how polished the exterior, without a working engine, you won’t get far.
Businesses have one thing in common: making money. Or raising money, if they’re an NGO.
As an employee, your main goal is to make your company more money.
So, why not understand better how things work?
Equip yourself to contribute to discussions on new ventures or risk mitigation.
Financial Literacy Basics (Accounting): Start with understanding the core financial statements—balance sheets, income statements, and cash flow statements.
This knowledge lets you gauge your project's or department's health and make informed decisions.
Budgeting and Forecasting: Learn to plan and forecast effectively.
You'll be seen as a strategic thinker capable of anticipating future needs and preparing accordingly.
Investment and Risk Management: Understand the fundamentals of investing and risk assessment.
How much is your company’s weighted average cost of capital?
What is the net present value of a project?
How much time will it take before a project becomes profitable?
Example: Alex, a tech lead, leveraged his new financial skills to propose a cost-saving initiative that was well-received by senior management, highlighting his potential for higher leadership roles.
Don’t let financial jargon throw you off course.
Go to your leader and tell them you want to learn finance. Maybe they will suggest a course for you.
For sure, they’ll understand you mean business.
If you want to start somewhere, here is the book that is recommended for reading in our finance class (it’s only a thousand pages, so it should keep you busy for a while):
Fundamentals of Corporate Finance By Stephen Ross, Randolph Westerfield, and Bradford Jordan
3/ Recommendations
Recomposed by Max Richter: Vivaldi, The Four Seasons
A masterpiece from one of my favorite contemporary composers.
Find it on Spotify and other streaming services.
How I got wealthy without working too hard [Extended]
A blog post about one way you can become wealthy as a programmer in your 30s by making some strategic decisions.
$100M CEO Explains How to Build A Brand in 2024
Alex Hormozi’s 30-minute masterclass on branding. A must-watch.
Thank you for reading, and let me know if you liked something in particular in this newsletter.
I hope you have a great weekend, friends!
Leo
P.S.: If you want to read my content daily, don’t forget to follow me on Linkedin.
P.S. 2: If you want to take your productivity to the next level, check out my extensive Productivity course that can accelerate your career.