Business skills all in one for dummies (for dummies (business personal finance))

Business Skills ALL-IN-ONE by John A. Tracy, Mary Ann Anderson, Dr Edward G. Anderson, Jr., Dr Geoffrey Parker, Dawna Jones, Stan Portny, Joel Elad, Natalie Canavor, Ryan Deiss, Russ Henneberry Business Skills All-in-One For Dummies® Published by: John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, www.wiley.com Copyright © 2018 by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the Publisher Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/ permissions Trademarks: Wiley, For Dummies, the Dummies Man logo, Dummies.com, Making Everything Easier, and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc and may not be used without written permission All other trademarks are the property of their respective owners John Wiley & Sons, Inc is not associated with any product or vendor mentioned in this book LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: THE PUBLISHER AND THE AUTHOR MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS WORK AND SPECIFICALLY DISCLAIM ALL WARRANTIES, INCLUDING WITHOUT LIMITATION WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE.  NO WARRANTY MAY BE CREATED OR EXTENDED BY SALES OR PROMOTIONAL MATERIALS. THE ADVICE AND STRATEGIES CONTAINED HEREIN MAY NOT BE SUITABLE FOR EVERY SITUATION. THIS WORK IS SOLD WITH THE UNDERSTANDING THAT THE PUBLISHER IS NOT ENGAGED IN RENDERING LEGAL, ACCOUNTING, OR OTHER PROFESSIONAL SERVICES.  IF PROFESSIONAL ASSISTANCE IS REQUIRED, THE SERVICES OF A COMPETENT PROFESSIONAL PERSON SHOULD BE SOUGHT. NEITHER THE PUBLISHER NOR THE AUTHOR SHALL BE LIABLE FOR DAMAGES ARISING HEREFROM.  THE FACT THAT AN ORGANIZATION OR WEBSITE IS REFERRED TO IN THIS WORK AS A CITATION AND/OR A POTENTIAL SOURCE OF FURTHER INFORMATION DOES NOT MEAN THAT THE AUTHOR OR THE PUBLISHER ENDORSES THE INFORMATION THE ORGANIZATION OR WEBSITE MAY PROVIDE OR RECOMMENDATIONS IT MAY MAKE. FURTHER, READERS SHOULD BE AWARE THAT INTERNET WEBSITES LISTED IN THIS WORK MAY HAVE CHANGED OR DISAPPEARED BETWEEN WHEN THIS WORK WAS WRITTEN AND WHEN IT IS READ For general information on our other products and services, please contact our Customer Care Department within the U.S at 877-762-2974, outside the U.S at 317-572-3993, or fax 317-572-4002 For technical support, please visit https://hub.wiley.com/community/support/dummies Wiley publishes in a variety of print and electronic formats and by print-on-demand Some material included with standard print versions of this book may not be included in e-books or in print-on-demand If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com For more information about Wiley products, visit www.wiley.com Library of Congress Control Number: 2018933542 ISBN 978-1-119-47397-8 (pbk); ISBN 978-1-119-47400-5 (ebk); ISBN 978-1-119-47398-5 (ebk) Manufactured in the United States of America 10 Table of Contents INTRODUCTION About This Book Foolish Assumptions Icons Used in This Book Beyond the Book Where to Go from Here 1 2 BOOK 1: ACCOUNTING CHAPTER 1: Introducing Financial Statements Setting the Stage for Financial Statements Offering a few preliminary comments about financial statements Looking at other aspects of reporting financial statements 10 Income Statement 10 Presenting the components of the income statement 11 Income statement pointers 12 Balance Sheet 13 Presenting the components of the balance sheet 13 Balance sheet pointers 15 Statement of Cash Flows 17 Presenting the components of the statement of cash flows 17 Statement of cash flows pointers 19 A Note about the Statement of Changes in Shareowners’ Equity 20 Gleaning Important Information from Financial Statements 20 How’s profit performance? 20 Is there enough cash? 21 Can you trust financial statement numbers? 22 Why no cash distribution from profit? 24 Keeping in Compliance with Accounting and Financial Reporting Standards 24 Looking at who makes the standards .25 Knowing about GAAP 26 Divorcing public and private companies 27 Following the rules and bending the rules 28 CHAPTER 2: Reporting Profit or Loss in the Income Statement 31 Presenting Typical Income Statements Looking at businesses that sell products Looking at businesses that sell services Looking at investment businesses Table of Contents 32 32 34 35 iii Taking Care of Housekeeping Details Being an Active Reader Deconstructing Profit Revenue and expense effects on assets and liabilities Comparing three scenarios of profit Folding profit into retained earnings Pinpointing the Assets and Liabilities Used to Record Revenue and Expenses Making sales: Accounts receivable and deferred revenue Selling products: Inventory Prepaying operating costs: Prepaid expenses Fixed assets: Depreciation expense Unpaid expenses: Accounts payable, a ­ ccrued expenses payable, and income tax payable Reporting Unusual Gains and Losses Watching for Misconceptions and Misleading Reports CHAPTER 3: 45 46 46 47 48 50 51 53 Reporting Financial Condition in the Balance Sheet 55 Expanding the Accounting Equation Presenting a Proper Balance Sheet Doing an initial reading of the balance sheet Kicking balance sheets out into the real world Judging Liquidity and Solvency Current assets and liabilities Current and quick ratios Understanding That Transactions Drive the Balance Sheet Sizing Up Assets and Liabilities Sales revenue and accounts receivable Cost of goods sold expense and inventory Fixed assets and depreciation expense Operating expenses and their balance sheet accounts Intangible assets and amortization expense Debt and interest expense Income tax expense and income tax payable Net income and cash dividends (if any) Financing a Business: Sources of Cash and Capital Recognizing the Hodgepodge of Values Reported in a Balance Sheet CHAPTER 4: 36 38 40 41 42 44 56 57 59 60 61 62 63 64 68 69 69 70 71 71 73 73 74 74 77 Reporting Cash Sources and Uses in the Statement of Cash Flows 79 Meeting the Statement of Cash Flows 80 Presenting the direct method 81 Opting for the indirect method 83 iv Business Skills All-in-One For Dummies Explaining the Variance between Cash Flow and Net Income Accounts receivable change Inventory change Prepaid expenses change Depreciation: Real but noncash expense Changes in operating liabilities Putting the cash flow pieces together Sailing through the Rest of the Statement of Cash Flows Understanding investing activities Looking at financing activities Reading actively Pinning Down Free Cash Flow Limitations of the Statement of Cash Flows CHAPTER 5: 84 85 86 87 87 89 90 90 91 92 93 94 95 Reading a Financial Report 97 Knowing the Rules of the Game 98 Making Investment Choices 99 Contrasting Reading Financial Reports of Private versus Public Businesses 101 Using Ratios to Digest Financial Statements 102 Gross margin ratio .105 Profit ratio 106 Earnings per share (EPS), basic and diluted .106 Price/earnings (P/E) ratio 108 Dividend yield 109 Market value, book value, and book value per share 110 Return on equity (ROE) ratio 112 Current ratio 112 Acid-test (quick) ratio 113 Return on assets (ROA) ratio and financial leverage gain 114 Cash flow ratios — not 116 More ratios? 116 Frolicking through the Footnotes 117 Checking Out the Auditor’s Report 118 Why audits? 118 What’s in an auditor’s report? 119 Discovering fraud, or not 120 BOOK 2: OPERATIONS MANAGEMENT 123 Designing Processes to Meet Goals 125 Getting Started with Process Improvement Planning Operations Considering a serial process Placing operations in parallel 126 126 127 127 Table of Contents v CHAPTER 1: CHAPTER 2: CHAPTER 3: vi Improving Processes According to a Goal Reducing customer flow time Increasing system capacity Balancing the line Utilizing flexible resources Improving a process that has excess capacity Managing Bottlenecks Getting tripped up by overproduction Increasing process capacity 129 131 132 134 135 136 137 138 139 Planning for Successful Operations 141 Planning from the Top Down Determining corporate strategy Preparing for success Executing the plan Exploring the Components of an Aggregate Plan Putting together a plan Creating the master schedule Considering Materials Gathering information for the system Getting system results Taking MRP data to the factory floor Planning for Services Seeing the difference in services Establishing the service plan Applying Information to the Entire Organization 142 142 143 145 145 146 147 148 148 149 151 152 152 153 154 Creating a Quality Organization 157 Reaching Beyond Traditional Improvement Programs Multiplying failures Raising the bar Varying skill levels Adding to the Tool Box Defining the problem Measuring the process Analyzing the problem Implementing a solution Maintaining the gain Overcoming Obstacles Failing to focus Prioritizing into paralysis Falling for the lure of magical solutions Lacking employee involvement Not knowing what to 158 158 160 160 161 162 163 163 169 170 172 172 172 173 173 173 Business Skills All-in-One For Dummies Not learning from the experience 174 Calling it a program 174 Giving up 174 BOOK 3: DECISION-MAKING CHAPTER 1: CHAPTER 2: 175 The Key Ingredients for Effective Decisions 177 Distinguishing the Different Kinds of Decisions Strategic decisions Tactical decisions Operational and frontline decisions Identifying the Different Decision-Making Styles Recognizing the Workplace Environment and Culture as a Force Mapping your company on the innovation curve Accounting for company organizational structures Assessing the health of the workplace Developing the Decision-Maker: To Grow or Not? Knowing thyself Avoiding temptations that obstruct sound decisions 177 178 178 179 179 180 181 183 188 188 189 189 Walking through the Decision-Making Process 191 Clarifying the Purpose of the Decision Identifying the reason for the decision Taking a tactical or strategic approach Eliciting All Relevant Info Doing your research Gaining distance to stay objective Paying attention to different perspectives Separating fact from speculation Including feelings as information Knowing when you have enough Sifting and Sorting Data: Analysis Conducting your analysis Critically evaluating your data Making assumptions intentionally . . . or not Establishing and weighing criteria Avoiding analysis paralysis Generating Options Avoiding the one-option-only trap Tapping into others’ creativity Vetting your top options Assessing Immediate and Future Risk Identifying risks Considering people’s response to risk 192 192 193 193 194 194 195 196 196 197 198 198 199 200 201 204 205 206 206 207 209 209 210 Table of Contents vii CHAPTER 3: Mapping the Consequences: Knowing Who Is Affected and How Making the Decision Communicating the Decision Effectively Implementing the Decision Putting together your action plan Deciding what is important: Metrics Setting priorities Learning from the implementation process Decision-Making on Auto-Pilot Grasping intuitive decision-making Examining intuition in different situations 211 212 213 214 214 215 217 217 218 219 219 Becoming a More Effective Decision-Maker 223 Upping Your Game: Transitioning from Area-Specific to Strategic Decisions Highlighting strategic decisions Avoiding the perils of micromanaging Moving from specializing in one area to working across functions Displaying Character through Decision-Making Mirror, mirror, on the wall: Taking a close look at yourself Using defining moments to build character Handling yourself when things go wrong Improving Your Decision-Making by Becoming a Better Leader Differentiating between leadership and authority Using your power for good Being a leader good enough to ask the tough questions Creating Safe and Stable Workplaces Adapting your management style Taking steps to improve the quality of the working environment Being the leader you expect to see in others 230 231 232 233 233 235 235 236 237 238 238 239 241 BOOK 4: PROJECT MANAGEMENT 243 Achieving Results 245 Determining What Makes a Project a Project Understanding the three main components that define a project Recognizing the diversity of projects Describing the four stages of a project Defining Project Management Starting with the initiating processes Outlining the planning processes Examining the executing processes 245 CHAPTER 1: viii 224 224 227 Business Skills All-in-One For Dummies 246 247 248 250 251 252 255 programs, projects versus, 248 overview, 335–336 project abstract (project profile), 285 project dashboard, 349–350 project audience project-progress report, 345–348 assessing power and interest, 281–282 receiver, 337 audience list senders, 337 audience list template, 272–274 two-way, 338 categorizing, 265–266 written reports, 340–342 displaying, 278–279 controlling processes, 257 end users, 267–268 executing processes, 255–256 maintaining up-to-date, 268–270 initiating processes, 251–252 overview, 264–265 justifying project support groups, 267 beneficiaries, 289–290 authority and, 279–281 confirming feasibility, 292–293 drivers, 272–275, 276–277 identifying initiator, 286, 288–289 keeping involved, 277 identifying real users, 290–291 maximizing involvement, 278 identifying related projects, 293 observers, 272–274, 276–277 objectives, 297–302 overview, 263–264 for organization, 294–295 supporters, 272–277 project champion, 290 what’s in it for me (WIIFM), 278 project requirements, 291–292 project champion, 273, 290 project title, 286–287 project charter, 285 research, 295–296 project constraints, 302–305 scope of work, 296–297 project dashboard, 349–350 overview, 250–251 project exclusions (scope statement), 284 planning processes, 252, 254–255 project management project audience assumptions, 305–306 assessing power and interest, 281–282 benefit-cost analysis, 253–254 audience list, 264–272, 278–279 closing processes, 257 authority and, 279–281 communication drivers, 272–275, 276–277 communications management plan, 353–354 keeping involved, 277 decoded messages, 337 maximizing involvement, 278 encoded messages, 337 observers, 272–274, 276–277 formal, 277, 340 overview, 263–264 informal, 277, 340 supporters, 272–277 listening, 338–339 project constraints, 302–305 mediums, 337 project managers meetings, 342–345, 351–353 avoiding shortcuts, 259–260 messages, 337 challenges, 260–261 noise, 337 handling resistance to project-management, 258–259 one-way communication, 337 Index 689 project management (continued) improving effectiveness, 261–262 overview, 257–258 tasks, 258 projects components of, 246–247 defined, 245 diversity of, 247–248 stages of, 248–249 scope statement, 283–285, 306–307 thinking in detail, 310–311 WBS assumptions and, 314–315 break points, 320–321 bubble-chart format, 329–330 categorizing work, 325–326 conducting survey using, 316–317 contract for services, 321–322 deliverable/activity hierarchy, 318–319 determining detail needed, 313–314 developing, 323–325 identifying risks, 332–334 improving quality of, 330 indented-outline format, 328–329 labeling entries, 326–327 long-term project, 321 naming objectives, 315 organization-chart format, 328 overview, 311–313 representing conditionally repeating work, 319–320 schemes, 322–323 overview, 257–258 tasks, 258 project profile (project summary; project abstract), 285 project request, 285 project summary (project profile), 285 project title, 286–287 promotional calendar (email), 646–651 annual promotional plan, 647–648 cataloging products and services, 646–647 marketing plan, 648–649 90-day rolling calendar, 651 30-day calendar, 650 promotional emails, 642, 645 pronouns, 524–525 proof, providing in business writing, 461 proofreading, 492, 530–533 property, plant, and equipment, 48 See also fixed assets proxy statement, 102 psychographic considerations (business writing), 452 public companies complex capital structure, 108 financial reporting, 101–102 GAAP and, 27–28 publishing content, 613 Pugh, Stuart, 203 Pugh Matrix (decision matrix), 169–170, 203–204 Q qualified leads, 585 templates, 331–332 quality management See Six Sigma quality titling activities, 315–316 quality media (blog posts), 638 WBS dictionary, 334 quick (acid-test) ratio, 64, 113–114 project management software, 215 quizzes (digital marketing), 587 project managers avoiding shortcuts, 259–260 challenges, 260–261 defined, 265 handling resistance to project-management, 258–259 improving effectiveness, 261–262 690 Business Skills All-in-One For Dummies R Radicati Group, Inc., 536 ratios (financial reporting) acid-test ratio, 64, 113–114 book value, 110 book value per share, 111–112 requesting cash flow ratios, 116 choosing whom to ask, 422–423 current ratio, 112–113 quality versus quantity, 425 dividend yield ratio, 109–110 writing request, 423–424 earnings per share, 106–108 unsolicited, 416 gross margin ratio, 105–106 writing market value, 110 choosing who to recommend, 418–419 overview, 102–104 conciseness, 420 P/E, 108–109 creating recommendation, 420–422 profit ratio, 106 details, 419 ROA ratio, 114–115 specificity, 419 ROE ratio, 112 readability indexes, 471, 473, 496 readability of business writing assessing, 472–474 Flesch Readability Index, 473 Fog Index, 473 matching reading level to audience, 472 overview, 471 reader-friendly words, 479–480 read-aloud method (business writing), 497–498, 523 readers (business writing) connecting with, 457–458 profiling, 545–546 reader profiling, 450, 452–457 visualizing, 455–456 real users, identifying, 290–291 receivables, receivers of information, 337 reciprocated recommendations (LinkedIn), 417 recommendations (LinkedIn) changing visibility of, 427, 428, 430 declining, 425–426 deleting, 427, 429–430 editing, 426–427, 429–430 new, 427–429 overview, 415–416 personal versus business, 418 quality versus quantity, 418 reciprocated, 417 requested, 417 Recruiter functions (LinkedIn), 371 recurring billing offers (continuity offers), 597–598 reengagement campaigns (email marketing), 655–656 regulators (project management), 265 relational emails, 643 relationship-building techniques (business writing) overview, 465–466 personalizing message, 466 “you-not-I” concept, 466–468 Remember icon, rent expense, 48 repeat customers, 595 reports (gated offers), 584 requested recommendations (LinkedIn), 417 requesters (project management), 265 requesting recommendations (LinkedIn) choosing whom to ask, 422–423 quality versus quantity, 425 writing request, 423–424 requirements, project, 291–292 research blog-publishing process, 623 gated offers, 584 informed decision-making, 194 justifying project, 295–296 readability of business writing, 473 resource list (digital marketing), 586 resources (projects), 246, 247 respectful tone (business writing), 463–464 Index 691 retained earnings scarcity subject lines (email), 659 defined, 45 scenario forecasting (decision-making), 208 folding profit into, 44–45 schedule (projects), 246 retained earnings account, 110 scheduled receipts (inventory record), 149 retargeting (content marketing), 613 schemes (WBS), 322–323 return on assets (ROA) ratio, 114–115 scope (projects), 246, 296–297 return on equity (ROE) ratio, 112 scope statement return on investment (ROI), 172 documents related to, 285 Return Path app, 664 overview, 283–284 presenting, 306–307 revenue deferred, 42, 46 screening job candidates, 442–443 income statement, 45–47 search engine optimization (SEO), 639 revenue and expense effects on assets and liabilities, 41–44 search marketing, 569, 617 reversed-out (dropped) type, 487 rhythm of writing long and complicated, 475–476 overview, 474 short and choppy, 475 right-justified text, 487 risk priority number (RPN) (FMEA), 166 risks decision-making, 209–211 WBS, 332–334 ROA (return on assets) ratio, 114–115 ROE (return on equity) ratio, 112 ROI (return on investment), 172 rolling over debt, 76 rolling-wave approach, to long-term project, 321 RPN (risk priority number) (FMEA), 166 Rumsey, Deborah J., 168 run chart, 171 SEC (Securities and Exchange Commission) overview, 25 proxy statement requirements, 102 segmentation campaigns (email), 645, 654–655 segmenting (content marketing), 612–613 self-esteem, decision-making and, 232 self-interest headlines (blog), 631 senders, 337 SEO (search engine optimization), 639 serial processes (flow unit), 127 serif fonts, 486 service-oriented business cycle time, 153 income statement, 34–35 planning operations, 152–154 Settings & Privacy page (LinkedIn) Account setting, 376 Communications setting, 376 overview, 375 Privacy setting, 376 S severity (SEV) dimension (FMEA), 166 sales material (gated offers), 585 shortest operating time (SOT), 151, 152 sales, general, and administrative (SG&A) expenses, 12, 37–39, 71 sales revenue, 11, 13, 37, 69 Salesforce, 610 salutations/greetings (email), 540–541 salvage value (fixed assets), 91 sans-serif fonts, 486 692 Business Skills All-in-One For Dummies SG&A (sales, general, and administrative) expenses, 12, 37–39, 71 short-term (current) assets, 62–63, 86–87 short-term (current) liabilities, 62–63 short-term actions, balancing with long-term direction, 225 short-term notes payable, 62 short-term solvency, current ratio and, 112 software sidebars, choosing for readability, 488–489 deep-discount offers, 592 signature block (email), 555 digital marketing, 587 sign-up process (LinkedIn), 380–388 simple capital structure (public companies), 108 simplicity of writing, 470–471 solvency evaluating, 61–64 short-term, 112 singular pronouns, 523–524 SOT (shortest operating time), 151, 152 Six Sigma quality Spamhaus, 664 DMAIC process SPC (statistical process control), 158 analyzing, 163–169 spec sheets (BOFU content marketing), 609 controlling process, 170–171 specialized decision-making, 230–231 defining problem, 162 specification limits (Six Sigma quality), 158–159 improving, 169–170 speculation, separating fact from, 196 measuring, 163 splintering services, 592 overview, 161–162 spontaneous liabilities, 75 obstacles to spontaneous-style copy, 478 catch-all solutions, 173 stakeholder list (project management), 264 failure to focus, 172 Starbucks, 597 giving up, 174 statement of cash flows handling out-of-control process, 173–174 active reader of, 93–94 lack of integration, 174 financing activities, 92–93 lacking employee involvement, 173 not learning from experience, 174 prioritizing into paralysis, 172–173 overview, 157–158 skill levels, 160–161 specification limits, 158–159 values, 160 skepticism, critical thinking versus, 200 skill levels (Six Sigma), 160–161 Skype, 225 slack adjusters (digital marketing), 597 direct method of reporting, 81–82 financing transactions, 17, 18–19 free cash flow, 94–95 indirect method of reporting, 83–84 investing activities, 91 investing transactions, 17, 18 limitations of, 95–96 operating activities, 17–18 overview, 17, 79–81 tips for, 19 variance between cash flow and net income, 84–90 small businesses, defined, 39 statement of changes in shareowners’ equity, 20 social media statement of earnings See income statement content marketing with, 617–618 statement of financial condition See balance sheet networking, 357 statement of financial position See balance sheet social media marketing, 569, 570–571 statement of operating results See income statement TOFU content marketing, 604 social proof headlines (blog), 633 social validation, 415–416 soft bounce (email), 665 statement of work, 285 statistical process control (SPC), 158 Statistics For Dummies, 2nd Edition (Rumsey), 168 Steinbaum, Harlan, 226 Index 693 target audience, 353 See also customer avatar stories use in content marketing, 609 team meetings using in business writing, 460 ad hoc, 352 strategic (executive-level) decisions regularly scheduled team meetings, 351 balancing short-term actions with long-term direction, 225 team members (project management), 264, 265 defined, 178 technical requirements, specifications document, 285 developing strategic thinking, 226–227 overview, 193, 224–225 thinking conceptually, 225–226 strategic planning (corporate strategy), 142–143 Streetlights and Shadows (Klein), 219 subheads, 515–516, 553–554 subject lines (email) benefit subject lines, 659 curiosity subject lines, 658–659 overview, 538–540 scarcity subject lines, 659 subscribers digital marketing, 570–571 email, 664–665 suffixes, overused -ent words, 501 -ing words, 499 -ion words, 500–501 -ize words, 501 -ly words, 501 -ous words, 501 suppliers (project management), 265 supporters (project management), 267, 272–277 Surowiecki, James, 186 surveys conducting with WBS, 316–317 digital marketing, 587 Sustainable Food Lab, 197 Swanson, Bill, 232 Sync Contacts screen (LinkedIn), 395–396 system capacity, increasing, 132–134 templates digital marketing, 586 WBS, 331–332 texting writing style, 503 thinking conceptually, 225–226 thinking in detail, 310–311 30-day calendar (email marketing), 650 Tip icon, TOFU (top of funnel) content marketing blog posts, 604 digital magazines and books, 605 goal of, 606 infographics, 604 microsites, 605 overview, 603–604 photographs, 604 podcasts, 605 primary research, 605 print media, 605 social media, 604 tone appropriate to culture, 463 appropriate to occasion, 462 appropriate to relationship, 462 authentic, 463 controlling, 464–465 email, 546–548 overview, 461–462 respectful, 463–464 top navigation bar (LinkedIn) Home option, 374 T tactical decisions, 178–179, 193 tags (blog posts), 639–640 Talent Solutions page (LinkedIn), 432 694 Technical Stuff icon, Business Skills All-in-One For Dummies Jobs option, 374 Learning option, 375 Me option, 374 Messaging option, 374 My Network option, 374 Notifications option, 374 Post a Job option, 375 Work option, 375 top of funnel content marketing See TOFU content marketing top-down strategy U unintended consequences (decision-making), 210 unknown information, 332–333 unlike operations (parallel processes), 127–128 unmodified opinion (auditor’s report), 119–120 aggregate plans, 143–145 unsolicited recommendations (LinkedIn), 416 corporate strategy, 142–143 unusual gains and losses (income statement), 51–53 implementation of plan, 145 WBS, 324 total quality management (TQM), 158 Toyoda, Akio, 235 Toyota, 235 TQM (total quality management), 158 tracking stocks, 108 transactional emails, 643–644 transactions (balance sheet), 55, 64–67 transitions, in writing overview, 516–518 use in blog posts, 636 trauma, in workplace, 238 treasury stock, 108 trend analysis, 63 trends defined, 198 run chart, 171 triggered emails, 645 TRUSTe Privacy Program (LinkedIn), 390 Twain, Mark, 510 Twitter finding content creators on, 627 posting job listings on, 436 two-way communication, 338 type columns, 487 fonts, 486 margins, 487 overview, 485 point size, 487 Tyson, Eric, 99 unwritten rules, 241 upper management (projects), 265 upsells, 596 urgency and scarcity headlines (blog), 632 V value investors, 111 values (Six Sigma quality), 160 vehicle of content (content marketing), 616 vendors (project management), 265 visualizing technique active listening, 338–339 planning messages, 455–456 visuals, using in business writing, 460 vocabulary guidelines (business writing) abstract nouns, 480–481 action verbs, 482–483 concrete nouns, 480–481 everyday words and phrasing, 478–479 and or but, 528 reader-friendly words, 479–480 use of comparisons, 483–484 use of however, 523–524 which versus that, 525–526 who versus that, 526–527 who versus whom, 526–527 W waiting period (WIP), processes, 130, 139 warning headlines (blog), 633 Warning icon, Index 695 WBS (work breakdown structure) Woods, Geraldine, 521 assumptions and, 314–315 work breakdown structure See WBS break points, 320–321 Work option (LinkedIn top navigation bar), 375 categorizing work, 325–326 work order, defined, 285 conducting survey using, 316–317 work packages, 318 contract for services, 321–322 workplace environment deliverable/activity hierarchy, 318–319 decision-making and, 180–188, 238–242 determining detail needed, 313–314 emotional safety, 240 developing, 323–325 high-quality interactions, 241 formats, 328–330 physical safety, 240–241 identifying risks, 332–334 Write for Us page (MarketingProfs), 628 improving quality of, 330 writers (blogs), 626–630 labeling entries, 326–327 writing down (writing off) assets, 52 long-term project, 321 writing recommendations (LinkedIn) naming objectives, 315 choosing who to recommend, 418–419 overview, 311–313 conciseness, 420 representing conditionally repeating work, 319–320 creating recommendation, 420–422 schemes, 322–323 specificity, 419 templates, 331–332 titling activities, 315–316 WBS dictionary, 334 webinars BOFU content marketing, 609 deep-discount offers via, 591 gated offers via, 584 what’s in it for me (WIIFM), 278, 458–459 white papers, 584 white space, choosing for readability, 485 Whiteboard Friday blog, 625 Whole Foods, 569, 606 WIIFM (what’s in it for me), 278, 458–459 WIP (waiting period), processes, 130, 139 wisdom of crowds concept, 186 The Wisdom of Crowds (Surowiecki), 186 Wood, Mark, 225 696 Business Skills All-in-One For Dummies details, 419 writing style clarity and simplicity, 470–471 conversational tone, 476–478 overview, 469–470 readability of, 471–474 rhythm, 474–476 texting and instant messaging, 503 written approvals (projects), 277 written voice See tone Y yellow belts (Six Sigma), 161 “you-not-I” concept (business writing), 466–468 Z Zarrella, Dan, 542 About the Authors John A.  Tracy (Boulder, Colorado) is Professor of Accounting, Emeritus, at the University of Colorado in Boulder Before his 35-year tenure at Boulder, he was on the business faculty for years at the University of California at Berkeley Early in his career, he was a staff accountant with Ernst & Young John is the author of several books on accounting and finance, including The Fast Forward MBA in Finance and Accounting Workbook For Dummies His son, Tage C. Tracy, joined him as coauthor on How to Read a Financial Report, now in its 8th edition John and Tage have also coauthored Cash Flow For Dummies and Small Business Financial Management Kit For Dummies John received his BSC degree from Creighton University He earned his MBA and PhD degrees at the University of Wisconsin in Madison He is a CPA (inactive status) in Colorado Mary Ann Anderson is an operations consultant and an adjunct professor in ­operations management at the University of Texas McCombs School of ­Business She has served as the faculty advisor for the Supply Chain Management and ­Engineering route to business majors and teaches numerous courses, ranging from manufacturing and service operations management to project management to supply chain strategy and logistics, as well as being an instructor in the Master of Science in Technology Commercialization program She received a master’s in engineering, concentrating in operations engineering, from the Massachusetts Institute of Technology She received her bachelor’s in electrical engineering from Kettering University (formerly the General Motors Institute), with a minor in business administration Ms Anderson is also an active consultant She specializes in operations management, business process analysis and improvement, supply chain management, and project management She has developed integrated strategy-marketingoperations computer simulations using the system dynamics computer simulation methodology for multiple firms, and she has published articles in such ­journals as The Systems Thinker Ms Anderson has served as a manufacturing strategist for a start-up firm, and her consulting clients include such firms as Ford Motor Company, Sony Entertainment, HP, and Shell, as well as the National Aeronautics and Space Administration (NASA) and the state of Texas Prior to her teaching and consulting work, she held a variety of positions as an engineer for the General Motors Corporation Dr Edward G.  Anderson, Jr., is an associate professor of operations management at the University of Texas McCombs School of Business and an IC2 Institute Research Fellow He is the faculty advisor for the BBA in the Science and Technology Management program and codirector for research for the McCombs Health Care Delivery Innovation Initiative He received his doctorate from the Massachusetts Institute of Technology and his bachelor’s degree, with majors in history and electrical engineering, from Stanford University Dr Anderson’s research interests include outsourced product development (­distributed innovation) and project management, knowledge management, supply chain management, and computer simulation He also has published research in national security, particularly counterinsurgency policy He has p ­ublished articles in Management Science, Organization Science, Production and Operations Management, MIT Sloan Management Review, and System Dynamics Review He is also the coauthor of the book The Innovation Butterfly: Managing Emergent Opportunities and Risks During Distributed Innovation, which describes leadership metrics, planning, and organization in the complex adaptive system that is innovation management Dr Anderson won the prestigious Wickham Skinner Early-Career Research Award from the Production and Operations Management Society He has received research grants from the National Science Foundation (twice), SAP, and HewlettPackard He is the department editor of Production and Operations Management for Industry Studies and Public Policy and was president-elect of the System Dynamics Society for 2013 Professor Anderson has consulted with Ford, Shell, Dell, and multiple other corporations and holds six U.S and E.U patents from his prior career as a product design engineer at the Ford Motor Company Dr Geoffrey Parker is professor of management science at Tulane University in the A.  B Freeman School of Business and serves as director of the Tulane Energy Institute He is also a faculty fellow at the MIT Sloan School’s Center for Digital Business Parker received a bachelor’s in electrical engineering and computer science from Princeton University, a master’s in electrical engineering (­technology and policy program) from MIT, and a PhD in management ­science from MIT.  He has spent much of his career studying coordination in supply chains, especially when firms outsource complex work Dr Parker has also contributed to the field of network economics and strategy as codeveloper of the theory of “two-sided” markets Dr Parker’s work appears in journals such as Harvard Business Review, MIT Sloan Management Review, Energy Economics, Journal of Economics and ­Management Strategy, Management Science, Production and Operations Management, Strategic M ­ anagement Journal, and System Dynamics Review Dr Parker has worked on projects with multiple firms, including AT&T, Cellular South, Chrysler, ExxonMobil, Hewlett-Packard, IBM, International Postal Corporation, Microsoft, PJM, SAP, Thomson Reuters, and the United States Postal Service Current research includes studies of distributed innovation, business platform strategy, and the design and performance of energy markets His research is funded by grants from the National Science Foundation, the U.S. Department of Energy, and multiple corporations He serves or has served as a National ­Science Foundation panelist and associate editor at multiple journals and as president-elect of the Industry Studies Association Dr Parker grew up in Oxford, Ohio, where he worked as an electronics technician and machinist in the Instrumentation Laboratory at Miami University Before graduate school, he held multiple positions in engineering and finance at General Electric in North Carolina and Wisconsin Dawna Jones believes business can be better for the people it serves and employs and for the planet that sustains us all When not exploring the world or enjoying the great outdoors, she can be found on her website: www.FromInsight ToAction.com Her business podcast, Evolutionary Provocateur, is on http://www Management-Issues.com and on iTunes She regularly hosts business innovation webinars, exchanging ideas worldwide toward healthier workplaces and restoring care for Nature Stan Portny, president of Stanley E. Portny and Associates, LLC, is an internationally recognized expert in project management and project leadership During the past 35 years, he’s provided training and consultation to more than 200 public and private organizations in consumer products, insurance, pharmaceuticals, finance, information technology, telecommunications, defense, and healthcare He has developed and conducted training programs for more than 100,000 management and staff personnel in engineering, sales and marketing, research and development, information systems, manufacturing, operations, and support areas Stan provides on-site training in all aspects of project management, project team building, and project leadership In addition, Stan can serve as the keynote speaker at your organization’s or professional association’s meetings To understand how Stan can work with you to enhance your organization’s projectmanagement skills and practices, please contact him at Stanley E.  Portny and Associates, LLC, 20 Helene Drive, Randolph, NJ 07869; phone 973-366-8500; e-mail Stan@StanPortny.com; website www.StanPortny.com Joel Elad, MBA, is the head of Real Method Consulting, a company dedicated to educating people through training seminars, DVDs, books, and other media He holds a master’s degree in Business from UC Irvine, and has a bachelor’s degree in Computer Science and Engineering from UCLA. He also operates several online businesses and co-founded the So Cal Comic Con Joel has written seven books about various online topics, including Facebook Advertising For Dummies, Starting an Online Business All-In-One For Dummies, ­Starting an iPhone Application Business For Dummies, and Wiley Pathways: E-business He has contributed to Entrepreneur magazine and Smartbiz.com, and has taught at institutions such as the University of California, Irvine, and the U ­ niversity of San Diego He is an Educational Specialist trained by eBay and a former Internet instructor for the Learning Annex in New York City, Los Angeles, San Diego, and San Francisco Joel lives in San Diego, California In his spare time, he hones his skills in creative writing, Texas Hold ’Em poker, and finance He is an avid traveler who enjoys seeing the sights both near and far, whether it’s the Las Vegas Strip or the ruins of Machu Picchu He spends his weekends scouring eBay and local conventions for the best deals, catching the latest movies with friends or family, and enjoying a lazy Sunday Natalie Canavor is a nationally known expert on business writing whose mission is to help people communicate better so they can get what they want — whether that means a job, a promotion, or a successful business Natalie creates practical writing workshops for businesspeople, writers, and professionals in every walk of life Her unconventional approach meshes the best strategies from many writing venues: feature articles and columns, video scripts, websites, presentations, print and online marketing materials, and copywriting She finds that given a planning structure and set of down-to-earth techniques, most people can dramatically improve their writing Natalie is the author of Business Writing in the Digital Age (Sage Publications), a textbook for advanced and graduate-level students of business and public relations And with Claire Meirowitz, she coauthored The Truth About the New Rules of Business Writing (Financial Times Press), a quick guide to better writing ­Natalie is happy to consult with organizations that see the value of raising the bar on ­writing, and travels to present custom workshops for businesses, associations, and other groups Find her at Natalie@businesswritingnow.com Ryan Deiss (pronounced “Dice”) is cofounder and CEO of DigitalMarketer.com, the leading provider of digital marketing training and certifications to small and mid-sized businesses Ryan is also the founder and host of the Traffic & Conversion Summit, the largest digital marketing conversion conference in North America, and the creator of the “Customer Value Optimization” methodology Ryan’s online business endeavors began at age 19, when he launched his first website from his freshman dorm room so that he could make some extra money to buy an engagement ring for his college sweetheart It worked! Not only did the girl say “Yes,” but his single little website ballooned into more than 500 sites, and a hobby had grown into a business Today, his digital media and e-commerce group, NativeCommerce.com, owns and operates hundreds of properties including DIYReady.com, MakeupTutorials com, DIYProjects.com, SurvivalLife.com, and Sewing.com (just to name a few), and according to Shark Tank star Daymond John, “His companies practically own the Internet.” He is also a bestselling author, and is considered one of the most dynamic speakers on modern digital marketing today Most important, Ryan is a proud dad of four wonderful kids, Jonathan, Joyce, Ruth, and Timothy, and husband to Emily . . . the girl who said “Yes” and inspired it all Russ Henneberry is the Editorial Director for DigitalMarketer Prior to joining DigitalMarketer, Russ was on the content marketing team for Salesforce.com; he also helped to launch a blog for a well-known marketing SaaS, growing it from to 120,000 unique visitors per month in less than a year Russ got his start in search engine optimization and pay-per-click marketing, managing 20 developers and over 600 digital marketing projects for small to midsized businesses It was at Salesforce that Russ began to master the art of content marketing at all stages of the sales and marketing funnel to create value for a company In his time at DigitalMarketer, front-end traffic to DigitalMarketer content has increased by 1,125 percent The content marketing team, under Russ’s management, generates thousands of leads and front-end sales per month by developing and executing a truly “full funnel” content marketing strategy Connect with Russ on Twitter: @RussHenneberry Russ lives in St Louis, Missouri, with his wonderful wife Sarah, his two amazing children, Thomas and Mary Grace, and an extremely enthusiastic dog named Buck Publisher’s Acknowledgments Acquisitions Editor: Amy Fandrei Production Editor: Siddique Shaik Project and Copy Editor: Susan Pink Cover Image: © BUTENKOV ALEKSEI/ Shutterstock Proofreader: Debbye Butler WILEY END USER LICENSE AGREEMENT Go to www.wiley.com/go/eula to access Wiley’s ebook EULA ... also interested in a business s financial statements, such as its labor union or someone considering buying the business. ) Think of yourself as a shareholder in a business What sort of information... is that all businesses should follow uniform methods for measuring and reporting profit performance and reporting financial condition Consistency in financial accounting across all businesses... www .dummies. com, search for Business Skills All- in- One For Dummies, and open the Downloads tab on this book’s dedicated page In addition, check out the cheat sheet for this book for tips on making informed decisions,