Product Management Financial Literacy Seminar


A two day seminar where basic quantitative and qualitative analysis techniques product managers can use to improve their work.  The seminar is deals with seven topics.  For each topic a brief orientation to the analysis technique is covered.  The seminar participants then work collaboratively on a set of hands on exercises where they can put the analytical techniques to use.  Sample data is provided for all exercises.  If the participants desire, we can substitute raw data from their company for the sample data to make the exercises more practical.

The seven topics covered in the seminar include:

How to Read and Interpret Financial Statements

The students will review the basics of financial statements: Income Statements, Balance Sheets, and Cash Flow Statements.  Participants will learn how to locate, download, and analyze quarterly and annual reports filed with the SEC for public companies.  In addition to financial statements, students will learn how to extract key operational information from the filings as well.  If desired, specific public companies can be targeted and included.

Moneywheel Analysis

Moneywheel analysis is a type of revenue sourcing analysis.  This approach helps product managers understand the dynamics of sales transaction types for their product lines.  It can also be used to estimate demand generation requirements for each stage of the sales cycle.   This supports the development of effective and focused sales development campaigns.

Tiering Analysis

Tiering Analysis is used to analyze large customer bases.  Customers are segmented into tiers based on the relative size of their revenue contribution to the business.  Tiering helps to product managers understand how groups of customers contribute to the overall success of the business.  It is the foundation for providing differentiated treatment for those customers who contribute the most to the business.

Flux Analysis

For SaaS companies, understanding the relative revenue contribution specific customers make to the business is only part of developing a full understanding of customer dynamics.  Flux analysis takes Tiering Analysis a step further.  It examines customer revenue behavior over a period of time.  It covers for example in a given period of time it covers how many customers grew their usage/revenues, saw their usage/revenues decline, had flat usage/revenue, were net new customers, and customers that cancelled all together.  Understanding the dynamics of flux in the customer base can help product managers drive more sales, usage, and retention.

Pareto Analysis

The Pareto principle (also known as the 80/20 rule),  states that, for many events, roughly 80% of the effects come from 20% of the causes.  Pareto analysis is often used to analyze revenue contributions (tiering is a type of Pareto analysis).  It is also often used to analyze customer support ticket activity to identify where improvements in product/service quality, documentation, and training can materially improve customer satisfaction and reduce operational costs.

Revenue Calendarization

Revenue Calendarization is a basic technique of analyzing when during the year customer’s agreements come up for renewal.  Understanding the numbers of customers and their revenue contribution revenue can be a valuable tool in establishing timeframes for software releases and upgrades.

Enterprise Value

Enterprise Value is the most commonly used metric to assess and compare the valuation of companies.  Participants will learn how to determine the enterprise value of public technology companies as well as private companies.