The compulsory requirements for this Open Badge are:

- e-learning module Finance for managers + accompanying exam.
- individual and group assignments completed under the guidance of, and positively assessed by cMBE moderator.

**General competencies**

By completing the compulsory elements of this block, the badge owner has displayed the ability to manage his/her own progress through the module, to successfully plan and complete both the individual elements and preparatory exercises detailed below and to contribute to the group sessions in such a way as to achieve a positive assessment result from the cMBE group moderator.

**Learning objectives e-learning module: Finance for managers**

- After completing the e-learning on finance, the badge owner has achieved the following learning objectives.
- Can summarise the basic principles relating to the term 'financial intelligence'.
- Can explain the importance of using key metrics at managerial level.
- Is able to explain why a manager only needs to know what he/she needs to know when it comes to finance.
- Knows how to access to a comprehensive glossary of financial terms, to be used as reference material in the future.
- Understands the importance of bookkeeping.
- Is familiar with the basic concepts used in the world of business finance.
- Can describe the purpose of the balance sheet and list its main characteristics.
- Can define the categories used to compile a balance sheet.
- Can explain the format of a balance sheet and describe the difference between a double column and single column representation.
- Can identify fixed assets and current assets and differentiate between the two.
- Can list the characteristics of tangible, intangible and financial fixed assets, and give examples of each.
- Can list the characteristics of current assets and give examples.
- Is able to summarise some important things to take into account when considering the financial impact of stock and inventory.
- Can explain how 'value' is defined in relation to assets.
- Is able to explain the concept of depreciation and describe two commonly used methods of calculating depreciation.
- Can describe the purpose of the income statement and list its characteristics.
- Can explain how the income statement can be used to monitor the financial state of a company.
- Can explain how the balance sheet and income statement are linked.
- Is able to differentiate between costs and expenses, and between revenues and receipts.
- Can list the different kinds of cost categories and give examples of each.
- Can explain the significance of the break-even point.
- Is able to explain why the method used to compile the income statement is directly related to decision-making at managerial level.
- Can describe the importance of cutting costs.
- Is able to describe the purpose of the cash flow statement and list its main characteristics.
- Can list the main categories used in the cash flow statement.
- Is able to explain why the cash flow statement is equally as important as the other financial statements.
- Can explain what a legal entity is;
- Can define the term 'accounting' and explain the purpose of accounting.
- Is able to describe the importance of financial accounting in all organisations.
- Can describe what a ledger is and list the main groups of ledgers.
- Can list the phases of the accounting process.
- Can differentiate between financial accounting and managerial accounting and list the characteristics of each.
- Is able to explain how managerial accounting can and should be used within an organisation.
- Can explain what a dashboard is and why it is such a useful management tool.
- Is able to summarise the most important design elements to consider when creating a dashboard.
- Can define the terms: key metrics, profitability, solvency and liquidity.
- Is able to explain the (subtle) difference between key metrics and key performance indicators.
- Can describe two methods for calculating the liquidity of an organisation.
- Can explain the significance of the solvency ratio.
- Is able to explain what the profitability figure says about an organisation's financial position.
- Can summarise why it is important to combine key metrics with a dashboard.
- Is able to list the basic principles of budgeting.
- Can summarise why budgeting is an important skill for managers.
- Can describe the characteristics of top-down and bottom-up budgeting and differentiate between the two.
- Can explain the significance of seasonal influences when compiling budgets.
- Is able to describe how to compile a simple monthly budget.
- Can summarise the steps in the budgeting process.
- Can identify potential causes of tension when budgeting.

**Certificate**

As a result of achieving these objectives, the badge owner has passed the accompanying exam, consisting of 30 questions with a minimum pass requirement of 70% and received a certificate as proof of learning.

**Budgeting assignment **

The badge owner has demonstrated a solid understanding of the basic principles of business finance and how they relate to budgeting. He/she therefore recognises the basic principle of compiling a budget; namely that it must be realistic and balanced. The badge owner also recognises the importance of monitoring a budget using periodic reviews to ensure that goals are being met and that the team or department remains financially on track.

The badge owner understands that strategic financial planning at all levels is key for forecasting future profits and minimising shortfalls, thus contributing to the success and productivity of the company.

The badge owner was able to apply the theoretical knowledge gained from the e-learning to gather the historical, factual data needed to compile a realistic budget. This realisation that budgets must be based on factual data rather than opinions is a key insight here. The process of compiling a budget required the badge owner to translate the financial data into concrete goals for the team/department/project. 

When presenting the budget to the cMBE group, the badge owner successfully selected the essential elements to be communicated. He/she has translated the theoretical knowledge to a practical workplace setting and in doing so has carefully considered how this data can help and improve daily practices. 

The badge owner has prepared a presentation, specifically aimed at the target group in question. In doing so he/she has successfully used his/her communication skills and thought about how these skills have developed further during the cMBE programme. He/she has therefore demonstrated an understanding of the importance of getting people on-side with a project or departmental budget, creating support for it within the team and applied everything he/she knows about the importance of communication skills.

The badge owner is able to distinguish between factual data and opinions when selecting which information to use as input for a budget. 

By considering several different scenarios and evaluating their effectiveness for staying within budget, the badge owner was able to analyse which variables were at play. He/she used these alternative scenarios to explain how adjustments in the budget could be implemented to react to changing circumstances. As such, the budget was clearly formulated as a comprehensive, practical management tool.

During a group discussion, the badge owner made a positive contribution to the analysis of the other budget presentations, with a focus on highlighting positive elements and areas for improvement. This demonstrated an understanding of both giving and receiving effective feedback.

The badge owner compiled a detailed budget based on his/her own position within the organisation, using actual data gathered from his/her working practices. This included defining the parameters for the budget. In doing so, he/she clearly described the project, department or team in question, including details of the operating activities involved. Having created a detailed budget, the badge owner communicated the most important elements of his/her budget to the rest of the cMBE team during a brief presentation. In doing so, he/she created a clear and straightforward visualisation that was understandable to everyone involved and in which his/her choices were clearly justified.

The badge owner has therefore demonstrated the ability to compile a budget successfully and understands that implementing and monitoring this budget successfully will directly contribute to the performance of the team.  

From the viewpoint of a manager, the compilation of this budget also required the badge owner to see things from the perspective of the other team members or employees involved in the project or departmental activities in question.

**Assignment soft skills**

The badge owner understands the importance of self-reflection in relation to personal development and professional advancement. 

Through a process of self-reflection and evaluation, the badge owner has reviewed his/her own behaviour and past performance and to develop plans for improving more soft skills the future. 

The badge owner has analysed his/her own SMART goals and given at least five examples of practical improvements made during the course of the cMBE programme. 

The badge owner has demonstrated the ability to review the personal goals set earlier in the programme and reflect honestly on the progress that has or has not been made. The emphasis here was on honesty. He/she has assessed whether these goals were, in hindsight, realistic. This enabled him/her to draw conclusions that can be used for future improvement plans. 

Sharing these personal insights with the cMBE group shows that the badge owner is willing and able to develop a continuous cycle of improvement. Furthermore, an honest evaluation of his/her own performance shows that the badge owner has taken the first steps towards developing a reflective practice in terms of developing soft skills in the workplace.

**Future focus assignment**

Together with the other members of the group, the badge owner summarised everyone’s areas of professional expertise. As such, the group took the first steps towards establishing a professional network that can be maintained in the future. 
Exchanging contact information, establishing links on social media and making plans to stay in touch in the future further supported this.