This week’s learning journal is based on the concept of learning and developing from ‘managerial work experiences’ as mentioned in Davies and Easterby-Smith (1984). This concept consists of the key idea that experience is the key aspect to the development of managers; however, some kinds of experiences provide more effective development than others. So the problem that I have identified for this week is that did I develop as a student in my experience as a CFO in Mike’s Bikes?
When analysing this question, I have found that the only way to determine if I have in fact developed as a student in my experience as a CFO in Mike’s Bikes is to compare what I knew about being a CFO beforehand and what I know now. When I started Mike’s Bikes as a CFO, I had no clue of how any of the financials lead to a higher shareholder value. I attempted to look through various academic articles on not only how the financial decisions in mikes bikes affect the shareholder value, but also the various CFO journals from previous semesters, and how in the real world, the CFO’s decisions impact upon the shareholder value. From this research I found that the role of the CFO is not to strategically forecast the future but merely take the forecasting from all the other executives, such as the amount wanting to spend on advertising, in combination with the expected sales from both marketing and operations executives and reviewing the feasibility of such decisions. Regardless of these findings, the only way I have come to terms with this is via the practical and novel of experience that is provided by the Mike’s Bikes simulation, hence I believe I developed as a student by being placed in an extremely challenging role and attempting to live up to the expectations placed on the position (Davies & Easterby-Smith, 1984).
My testing of my development of knowledge of being a CFO has been through the various decisions I have made for each roll over, with regards to how much each executive is able to spend. From this I have learnt that being conservative on spending, unless the decision is largely justified, is the best way to approach money allocation. From this week, our company’s shareholder value dropped significantly. I believe this to be due to my lack of conservativeness when allocating funds, I believe that I was much more inclined to spending a lot more than usual as the previous roll over, we gained a significant increase in cash on hand. From this experience, I have developed as a CFO, as I have now learned [the hard way] from experience that conservative spending is the best option. For next week’s roll over I am going to implement my idea that I will be much more conservative on spending to determine whether my previous learning and my hypothesis is indeed correct.
Davies, J., & Easterby-Smith, M. (1984). Learning and developing from managerial work experiences. Journal of Management Studies, 21(2), 169--182. doi:10.1111/j.1467-6486.1984.tb00230.x