SNC 2015 | Finance 1.1

SUMMER NATIONAL CONFERENCE 2015 | SAN JOSE, CALIFORNIA
AIESEC United States Inc.
Financial Management Training
Day 1
Session 1

Welcome!

Who am I?

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

Key Expectations
This is an action oriented space.
If you have an issue - Solve it
If you have a solution - Do it
If you have an opinion - Voice it

Key Expectations
AIESEC 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 Optimization
Finance 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 questions
Always on the forefront of our minds when considering investments (MC or LC)
Post Project Review (PPR)
MC Side
Post 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 Side
Randomized 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 MC
Both reports will be reviewed by MCP, MCVP F, and Project Responsible to plan for next strategic project
of that function
Once 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
sustainability
excellence
integrity
leadership
diversity
enjoyment in our experiences

We have a ton of bottlenecks:
Financial Model
Education
Cash flow
Intacct
Wave Accounting
Conferences
MC

We can cut all of them, but the problem
will still exist
Because none of them are part of the CULTURAL SHIFT we need to
achieve: 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
investmen
ts
(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
affiliatio
n 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
affiliatio
n 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 Dos
LEAD
Better MC Team

Shift AIESEC’s Culture
Exhibit A: NSB
Financial Analyst I
Financial Analyst II
Real Jobs, looks at the business on a larger picture
Makes decisions
Offer advice

AIESEC’s Culture
Exhibit B:
[You fill this in]

Finances is Under-utilized
MC 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 ask
Accounts 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 ask
Accounts 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 inspiration
It is understanding the reality of your LC from all points
Identifying 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

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