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42 Business skills > Financial skills - Pg. 484

484 Part 9 Hr skills introduction HR professionals need to see themselves ­ and be seen ­ as business people with particular expertise in people, rather than HR people who happen to work for a business. To make an effective contribu- tion, they must possess business and financial skills. They need to understand what their business model is ­ how their organization delivers value to its cus- tomers and how the business achieves competitive advantage and makes money. They need to under- stand and be able to use the language of the business and, because this will generally be expressed in monetary terms, they need to appreciate how the financial systems of the business work. They also need to know about the concepts of the business model and business model innovation in order to understand how the business makes money now and intends to do so in the future so that they can do something about it. Equipped with this knowledge, HR professionals can develop the skills needed to interpret the organ- allocating resources to business opportunities and making the best use of them to achieve the required results. Managers who are business-like understand and act upon: the business imperatives of the organization ­ its mission and its strategic goals; the organization's business model ­ the basis upon which its business is done (how its mission and strategic goals will be achieved); the organization's business drivers ­ the characteristics of the business that move it forward; the organization's core competencies ­ what the business is good at doing; the factors that will ensure the effectiveness of its activities including specific issues concerning profitability, productivity, financial budgeting and control, costs and benefits, customer service and operational performance; the key performance indicators (KPIs) of the