[MUSIC] So now, what do we do for the CEO has come to us? We had sometime. We did some analysis. Now, how do we recommend the CEO? How do we fit our financial analysis into the whole decision of the company? Well, you have learned in this field specialization from IESE. A pillar on accounting. A pillar on finance. A pillar on marketing. A pillar on people. Now of course, every decision in every firm is not just about one specific point. But if you change something in the management team, it's going to affect the finance. It's going to affect the accounting. It's going to affect the marketing and vice versa. So, all the pillars have connected. Now the way you connect them is now up to you, now that you have the knowledge. Some hints that might help would be the first one is change not only affects the financial statements is going to affect other parts of the business. Agree, but this doesn't mean that finance is not important. Actually, the financial statements are crucial in the business unless you understand and you manage to have them alive, the company dies. The company can die out of cash even if strategy is really good right, but the financial statements need to be very good. Secondly, I would say that the CEO needs to understand how the different scenarios are reflected in the financial statements and that's what he argue. So you need to be able to tell him, why do we have so little cash? What happens with the NFO if we partner with KTM? Why do we have such bad working capital? You need to be able to tell him or her what's going on with the financial statement, because you are the expert now. Then what is the new NFO and the new working capital and how we deal with that? An important point that is not negligible and you know about that, but I am happy to remind to you is that the information has to be given in a concise and clear way. So you have to bare in mind that many times, the CEO is not an expert in finance, nor are all the members of the board. They need to be given an information that is clear, that is concise, that is self-contained. So, you need to be able to transmit that in a clear and understandable way. For that, you need to do a little bit of extra work to be able to present that instead of presenting tons of pages with numbers. You have to give some few and clear bullet points to the CEO, so that he can make up a clear decision. And finally, we started saying that finance is very important. But at the same time, we have to know that finances at the service of the strategy. So, you give all these analogies to the CEO. But at the same time, you know that perhaps you have to struggle for one or two year for the better of the company in the future with the strategy. So, it is really nice now that you've learned all the different pillars to see how finance interacts with marketing and how marketing interacts with managing people. We can see that the guy from marketing is really willing in any firm to give good terms to the clients to attract more clients, as an example. You go to some clients and tell them, look, instead of paying in 30 days, pay 40 days, it's okay. You're going to be, we'd have good relationship. Where the finance guy from the other side is telling the marketing guy, please don't do that, because my NFO is going to go up like crazy and I need to ask for more funding to the bank and then the bank is not going to give us that money. So there is always a little bit of tension between the marketing guy, the strategy guy, the finance guy. But after all in the board, the CEO is going to listen to this finance guide to the CFO that is the finance guide to the people in charge or the person in charge of managing people in the organizations, the marketing guy, the sales guy. So, it's a combination of all. So after you have done all this, what would you recommend to the CEO? [MUSIC]
