snc 2015 | finance 1.1

SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA

AIESEC United States Inc.Financial Management Training

Day 1Session 1


Welcome!


Who am I?


Key ExpectationsTake Everything MC says with a grain of salt. Experience got us to our position, but our experience are not universal


Key ExpectationsThis is an action oriented space.

If you have an issue - Solve itIf you have a solution - Do itIf you have an opinion - Voice it


Key ExpectationsAIESEC US Finance has major issues

You must be the leaders that push us forward.

#FinanceSteeringTeam2015


MC 212 MC Beyond MC Rise

Stand Empowered to Deliver

United by Purpose, Dared to Transform

Choose: Greatness

MCF Focuses

Better National Investment Process Optimization Financial Understanding on Levels

Exchange Growth System OptimizationFinance is SEXY (Increasing LCF activity)

Exchange Growth

Taking Finance Fluid (Backoffice Management | Front office decision making)

Increase Transparancy (MC <-> LC)

Intl 2% 0% 10%

National 70% 90% 20%

Local 28% 10% 70%


Financial Model-The LCPs do support the increased budget for strategic spending and the transfer of MC exchange revenue to the LCs

-LCPs need informed decision (Transparency on all functions)-Misunderstanding among the affiliation

-LCPs feels a maldistribution of the affiliation fee-More needs to be done to make sure everyone understands the model

"Less money to spend"Conference Model-LCPs understands the need for conference model sustainability and beleives that we are making efforts towards it

"More needs to be done"

Current Realities for LCPs(Extracted from NP report to BoD)


Clean Understanding of the Financial Model

Able to understand and answer questionsAlways on the forefront of our minds when considering investments (MC or LC)

Post Project Review (PPR)

MC SidePost project report: an analysis of the project, stakeholders, KPI, and overall feeling post project

*This is not meant to be a punishment or a deterance from projects, but to foster an ROI culture (from top->down)

LC SideRandomized LC survey: sent to 30% of the affected stakeholders,measuring effectiveness and overall feeling

*This is meant to gauge how the LC is feelinga about the MCBoth reports will be reviewed by MCP, MCVP F, and Project Responsible to plan for next strategic project of that functionOnce finalized and closed, the report will be sent out to the LCPs for transparency

Project Focuses: Giving back to the LCs

MC Expectations


Ideal State of Mind

"a for-profit business with a philanthropic component"

"AIESEC is the ultimate representation of a not-for-profit that is able to personify financial sustainability"


Does the idea state sound nice?


Do you have confidence that MC 1516 can do it?


One team can’t do it.

2012 leadership team discussed the same issues we are discussing..

"AIESEC is the ultimate representation of a not-for-profit that is able to

personify financial sustainability"


We need everyone on the boat to achieve: greatness

sustainabilityexcellence integrityleadershipdiversityenjoyment in our experiences


We have a ton of bottlenecks:Financial ModelEducationCash flowIntacctWave AccountingConferencesMC


We can cut all of them, but the problem will still exist

Because none of them are part of the CULTURAL SHIFT we need toachieve: sustainability


Let’s play a scenario game

Can you identify the issue in the following income statements


Those are all your LCs

Can you explain each line items?Do you discuss each number with your LCP?Can you explain what happened?If they are investments, what are the ROI?

Do you know where you can get this information?


One Team

How are you currently tracking your LC?What is your LCP like?

Why did you join the finance team? Why?

Who should you advise in your LC?


Jan Feb Mar Apr May Jun

CEO Budgeting (Develop a strategy based on YOY, Forecast, Market Reality)

Weekly meeting with VPF to exam sales report

Quarterly review, refocus and re-budget

Weekly meeting with VPF to review invest-ments for Board Report

Weekly meetings to evaluate whether forecast are made

Half year audit, remove all unnecessary operations

VPF Review prior year for data for LCP

Develop reports and find red spots

Offer advice on re-budgeting using resources

Board Report (Stressful times)

Constant revision of investments (HR+Inno)

Offer audit report

Business Operations


Jan Feb Mar Apr May Jun

LCP Planning with operation (ICX+OGX)OMG! The MC is so annoying

Team Retreat!! Why are we not doing exchange more :(

Spring Break YO

Fk, Im not making my numbers. What is this affiliation fee again?

Can we get a loan? Can we vote? Fk Im MoA.. (if lucky)

Summer!!!!!!! Summer OP? Eh maybe.

VPF Uhh yeah I think that fits into the budget

Woo RoKS! Omg it’s so expensive, yeah Ill look in to the budget

Spring Break YO

Fk this affiliation fee is killing me

Hey, LCP can you ask the MC for a loan?

Summer!!! Haha I dont have to do Summer OP

I quit...

AIESEC Operations


What can we do?

More Exchange?Well yes.

Alternate Revenue?Member EMPOWERMENT!!!!Dey DosLEADBetter MC Team


Shift AIESEC’s Culture

Exhibit A: NSB

Financial Analyst IFinancial Analyst II

Real Jobs, looks at the business on a larger pictureMakes decisionsOffer advice


AIESEC’s Culture

Exhibit B:

[You fill this in]


Finances is Under-utilizedMC can’t empower them nationally (2 touch points SNC+WNC)We need.....to empower LCPs to feel vulnerable enough to ask for advice...to understand their humility to see the issues beyond membership...to allow the LCPs to ask the tough questions

If as VPF you need set the expectation for your LCP to understand issues, even if they do not understand finance, they need to be aware.

They will use their network


Vice President of Finances

..are not being challenged because no CEO is challenging them

..are not being used because no CEO is asking them critically think about the LC

..are not being developed because there is no urgency


If I askAccounts Payable Accounts Receivable Accrual accounting Amortisation Assets Audit

Bad debts Balance sheet Balloon payment Bank reconciliation Bankrupt Benchmark

Bill of sales Bookkeeping Bootstrapping Bottom line Break-even point Budget

capital capital gain Cash Cash flow Chart of accounts Chattel mortgage

Collateral Commercial bill Contingent liability Cost of goods sold Credit Debit

Debt Default Depreciation encumbered equity forecast

Fringe benefits fully drawn advance goodwill gross income hire-purchase IPO

IR SKU Liability Line of credit Margin Net worth

Net profit net income Projections Profit margin R&D Receipt

Refinance rent to buy Repossess Retention of title Return on Investment

Budgeting


If I askAccounts Payable Accounts Receivable Accrual accounting Amortisation Assets Audit

Bad debts Balance sheet Balloon payment Rank reconciliation Bankrupt Benchmark

Bill of sales Bookkeeping Bootstrapping Bottom line Break-even point Budget

capital capital gain Cash Cash flow Chart of accounts Chattel mortgage

Collateral Commercial bill Contingent liability Cost of goods sold Credit Debit

Debt Default Depreciation encumbered equity forecast

Fringe benefits fully drawn advance goodwill gross income hire-purchase IPO

IR SKU Liability Line of credit Margin Net worth

Net profit net income Projections Profit margin R&D Receipt

Refinance rent to buy Repossess Retention of title Return on Investment Budgeting


A Message to Committee Presidents

All of this could be resolved if we communicate!

Being a President means more than just being inspirationIt is understanding the reality of your LC from all pointsIdentifying the issues before your VP or MC warns you

We need to start from the source of the LC

We need to educate the LCPs


Questions

How long do you spend on budgeting?

What can we do now?


“The only history worth a Tinker’s Damn,is the history we make today.”

-Ford

snc 2015 | finance 1.1

Education

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