Strategic Planning, Effective Budgeting & Cost Control

4 days 9-12 May 2016, Hong Kong $6,150.00 Download brochure Add to basket
4 days 17-20 May 2016, New York $4,845.00 Download brochure Add to basket
5 days 25-29 Jul 2016, London £4,895.00 + VAT* Download brochure Add to basket
4 days 19-22 Sep 2016, Dubai £3,995.00 Download brochure Add to basket
4 days 21-24 Nov 2016, Singapore $6,150.00 Download brochure Add to basket
5 days 21-25 Nov 2016, London £4,895.00 + VAT* Download brochure Add to basket

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Overview


Featuring:

  • Introduction to planning and control
  • Budgeting overview
  • Behavioural aspects of budgeting
  • Understanding cost behaviour
  • Flexible budgets and standard cost systems
  • Developing an annual/master budget
  • Conceptual aspects of budgeting
  • Resource allocation
  • Activity-based management and activity-based costing
  • Controlling Costs: Economy, Efficiency & Effectiveness
  • Delivering operational excellence

What this course will enable you to do:

  • Acquire best practices in budgeting
  • Understand the strategic role of cost concepts
  • Explain the costs concepts to the use of cost information for management control
  • Describe the role of budgets in the management process
  • Discuss the importance of strategy and its role in the master budget
  • Prepare a master budget and explain the interrelationships among its supporting schedule
  • Understand zero-base, activitybased, and kaizen approaches to budgeting
  • Explain the essence of control systems
  • Develop flexible budgets for evaluating short-term financial performance
  • Identify different cost control measures
  • Measure and evaluate performance
  • Leverage emerging technologies for delivering operational excellence

Today, the human mind is often absorbed in so much data, that it has difficulty processing the multitude of facts and relationships simultaneously and sometimes forgets important elements. Thus, as plans become more and more intricate, they should be documented in writing and include qualitative narratives of goals, objectives, and means of accomplishing the objectives.

This course will allow the participant to explore and share with other participants new thoughts in the planning, control, and budgeting cycle, resulting in a renewed energy in returning to the workplace and implementing a more focused budgeting process, which communicates useful and timely information to management.

The course will provide a framework for each topic covered, and then will make extensive use of exercises and case studies.

  • Live group instruction
  • Detailed practical examples
  • Use of case studies and real world examples
  • Interactive participation

All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials

Who should attend

  • Middle Management
  • Operations
  • Middle and Back Office
  • Financial and Product Control
  • Finance Business Partners
  • Planning and Budgeting
  • Management, Statutory and Regulatory Reporting
  • Auditors and Internal Control
  • Risk and Compliance Regulators
  • Accountants and Consultants
  • Graduate and Management Trainees

Instructors

We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

London
The course instructor for days 1-3:


The course instructor is FCCA and FCT with 25 years’ experience in the financial services, energy and retail sector, who has built up expertise in finance, treasury, internal audit, risk and governance. He is the former CFO of London Capital Group Holdings plc, and other prominent roles include business analyst in group reporting/global audit manager (treasury) for Royal Dutch Shell plc and group treasurer of Empire Stores Group Plc. Since becoming a trainer and independent consultant in 2009, he has developed reputation for delivering highly pragmatic learning with a practitioner perspective. He is a founder and director of GGV Treasury, Finance & Risk Solutions with clients in the UK and internationally.


The course instructor for days 4-5:

The course instructor is a Fellow Chartered Management Accountant (FCMA) with an exemplary record of senior management leadership roles in the strategic planning and implementation of performance measurement and management systems. His rich experience in finance and strategic information systems, spans over fifteen years in the financial services, telecommunications and higher education sectors. He lectures financial management systems to MBAs and executives at the University of Oxford, and conducts interdisciplinary research in Managerial Accounting and Information Systems. His current research focuses on the interplay of the social and organisational aspects of performance management systems in the contemporary organisational settings.

Dubai

The course instructor trained as a Chartered Accountant with Ernst & Young, working for them in the UK and later in Italy after graduating in mathematics from the University of Cambridge. He then worked for the Pearson Group as internal audit manager before becoming finance director of one of its subsidiaries. He has been Finance Director or CFO of six companies, including high-growth and turnaround situations. He has worked as a mentor for the Institute of Chartered Accountants on a senior level development programme.

He now works as an independent strategy consultant advising a range of businesses. He writes a monthly column for Management Today and a weekly column for forbes.com and speaks regularly to CEO and other senior audiences.

New York
Hong Kong
The Course Director has over 25 years’ experience in financial model development/auditing, valuations, M&A, strategy, training and consultancy. He has considerable experience in many different sectors (e.g. banking, energy, financial services, media, mining, oil and gas, transport and utilities).

He has headed Ernst & Young’s modelling team in Melbourne and was an Assistant Director in their strategy team in London. He was also a senior member of the UK Post Office’s M&A and strategy teams.

He has worked in the UK, Australia, Denmark, France, Belgium, Germany, Hong Kong, Indonesia, Malaysia, the Netherlands, New Zealand, Pakistan and Switzerland, with many internationally recognised clients, constructing and reviewing strategic and operational models for many high profile IPOs, LBOs and strategic assignments.

He is a regular contributor to the Institute of Chartered Accountants in Australia (ICAA), Certified Practising Accountants Australia (CPAA), the Chartered Institute of Management Accountants (CIMA), Finance 3.0 and various LinkedIn specialist discussion groups. He regularly presents at various accounting and finance conferences and writes a monthly Excel article for CIMA’s Insight magazine with a circulation of c.170,000.

He is a Fellow of the Institute of Chartered Accountants in England and Wales (ICAEW), a Fellow of the Institute of Chartered Management Accountants (CIMA) and is a professional mathematician specialising in probability, simulations and real options based problems.

Furthermore, he has recently been recognised by Microsoft as a Most Valuable Professional (MVP) for MS Excel for his expertise, experience and training in this area.

Singapore
The Course Director has over 25 years’ experience in financial model development/auditing, valuations, M&A, strategy, training and consultancy. He has considerable experience in many different sectors (e.g. banking, energy, financial services, media, mining, oil and gas, transport and utilities).

He has headed Ernst & Young’s modelling team in Melbourne and was an Assistant Director in their strategy team in London. He was also a senior member of the UK Post Office’s M&A and strategy teams.

He has worked in the UK, Australia, Denmark, France, Belgium, Germany, Hong Kong, Indonesia, Malaysia, the Netherlands, New Zealand, Pakistan and Switzerland, with many internationally recognised clients, constructing and reviewing strategic and operational models for many high profile IPOs, LBOs and strategic assignments.

He is a regular contributor to the Institute of Chartered Accountants in Australia (ICAA), Certified Practising Accountants Australia (CPAA), the Chartered Institute of Management Accountants (CIMA), Finance 3.0 and various LinkedIn specialist discussion groups. He regularly presents at various accounting and finance conferences and writes a monthly Excel article for CIMA’s Insight magazine with a circulation of c.170,000.

He is a Fellow of the Institute of Chartered Accountants in England and Wales (ICAEW), a Fellow of the Institute of Chartered Management Accountants (CIMA) and is a professional mathematician specialising in probability, simulations and real options based problems.

Furthermore, he has recently been recognised by Microsoft as a Most Valuable Professional (MVP) for MS Excel for his expertise, experience and training in this area.

Venue

Hong Kong

4-5 Star Hotel in Hong Kong

All of our courses are held in 4 – 5 star hotels, chosen for their location, facilities and level of service. You can be assured of a comfortable, convenient learning environment throughout the duration of the course.

Due to the variation in delegate numbers, we will send confirmation of the venue to you approximately 2 weeks before the start of the course. Course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

New York

New York Hotel

This program takes place on a non-residential basis at a New York hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

As with all programmes on-site administrators are with you throughout the programme to ensure smooth administration and group interaction.

London

Central London Hotel Venue

All courses are held at four or five star venues in Central London, Zone 1. We strive to provide you with a training environment of the highest quality, to ensure that the whole learning experience exceeds your expectations.

Your training venue will be confirmed by one of our course administrators approximately 3-4 weeks before the course start date.

Dubai

Dubai Finance

This programme takes place on a non-residential basis at a central 4 to 5* Dubai hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

Singapore

4-5 Star Hotel in Singapore

All of our courses are held in 4 – 5 star hotels, chosen for their location, facilities and level of service. You can be assured of a comfortable, convenient learning environment throughout the duration of the course.

Due to the variation in delegate numbers, we will send confirmation of the venue to you approximately 2 weeks before the start of the course. Course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

Related Courses

Agenda

Agendas are localised, please select your preferred location.

Day 1

Overview

Often the role of the Finance Department is limited to pulling together the numbers. Sometimes a strategic plan lacks concrete number support. Both of these scenarios overlook how a budget/forecast can integrate with strategic planning.

What is "strategy"?

  • Why actions often speak louder than words for successful businesses
  • How a strategy is developed and how/why it continues to evolve
  • Quantitative vs. Qualitative consideration

Laying the foundations for a successful business

  • Mission and vision statements
  • Strategies
  • Objectives
  • Goals

Principles of effective communication

  • Identifying stakeholders
  • Understanding their needs
  • Talking their language

Developing and executing a strategy

  • Development and analysis
    • Reviewing existing competencies
    • SWOT analysis
    • Porter's Five Forces
    • PESTEL analysis
    • Ansoff's matrix
    • Blue Ocean Strategy
  • Execution
    • Right people, right time, right now
    • Total quality management
    • SMART implementation

A strategic perspective in budgeting and forecasting

  • Definitions of budgeting and forecasting

Importance of business structure

  • Business structure
  • Physical structure
  • Operational structure
  • Responsibility structure
  • Financial structure
  • Cost models:
    • CVP analysis
    • Activity based costing
    • Activity based management
    • Value chain analysis

Day 2

Budgeting

Budgets are often criticised by end users for constraining them. Day 2 looks at how to make the budget and
the budgeting process useful for the business.

Introduction

  • "Best practice" quantitative budgeting
  • The factors that govern the model structure
  • The foundations of a budget model
  • Why templates don’t work

Budget management

In today's challenging business environment, cost management and cost reduction are keys to business
success.

  • Managing costs
    • Understanding the drivers of cost
    • Variable vs. Fixed cost issues
    • Cost Volume Profit (CVP) and breakeven analysis
    • Activity based management and activity based costing principles
    • Value chain analysis
    • Non-financial costs: e.g. staff morale, customer loyalty
  • Proactive
    • Cash discount/Price incentive schemes
    • Inventory management
    • Optimising assets’ economic lives
    • Lease vs. Buy
    • Reducing controllable costs
    • Refinancing/Amending capital structure
  • Reactive
    • Accounts payable teams
    • Credit collection agencies vs. Debt factoring
    • Supplier negotiations
    • Vertical integration/Partnerships

Cash flow and working capital management

Considering financing requirements

  • Returns on capital
  • Returns of capital
  • Key concepts of financing:
    • Risk
    • Return
    • Ranking
  • Analysis of results
  • Accounting ratios

Further considerations

  • The budget cycle
  • Reasons for budgeting
  • Types of budgets and budgeting methodologies
    • Zero based budgeting
    • Incremental
    • Top down
    • Bottom up
    • Top down and bottom up
  • Budget risk
  • Factors to consider in developing a budget
  • Practical issues
    • Model bias - how to get stakeholder ownership
    • Methods of building model assumptions
    • Building a working analysis from history
    • Being able to update with actual data as it becomes available

Practical example: Developing a budgeting model

Day 3

Variance analysis and forecasting in context

Improve your forecasting skills to turn historical data into future management information to assist your strategic planning, emphasising the importance of targeted variance analysis.

Risk-based budgeting and forecasting

  • Why do we need a risk perspective in budgeting/forecasting?
  • Risk factors affecting your budget/forecast
  • Risk vs. Uncertainty
  • Types of risk
    • Business
    • Operational
    • Financial
    • Enterprise
  • Tools of the trade
  • Alternative to point estimate modelling
    • Scenarios
    • Sensitivities
    • Simulations
  • Key driver analysis
    • Creating a waterfall chart
    • Creating a tornado (sensitivity) chart
    • Deterministic vs. Probabilistic methodologies

Forecasting in context

  • Common methods of financial forecasting
    • Create formula based data forecasts
    • Regression analysis
    • Bias and error estimation
    • Scenario modelling
    • Using PivotTables
    • Using 1-D and 2-D data tables
    • Using Scenario Manager
    • Calculating and graphing moving averages
    • Defining and solving problems: e.g. Goal Seek vs. Solver

Day 4

Analysis and reporting

What do we do with budgeting/forecasting results? This session discusses the analytical and business skills for your work place and how you would manage the process strategically in practice.

Key outputs of a budget model

  • Income statement vs. Cash flow
  • Confirming key outputs
  • Deriving key inputs
  • Developing KPIs

Variance analysis

  • Flexible budget variances
  • Operational vs. Planning issues
  • Key variances
    • Sales price
    • Sales volumes
    • Sales mix
    • Materials
    • Labour
    • Overheads
  • Modelling variance analysis

Data analysis

  • Using trend analysis
  • How Goal Seek, Scenario Manager and Solver may help
  • Revisiting risk: The role of scenario, sensitivity and simulations analyses
  • Strategic options analysis
  • Real options analysis
  • Six Sigma
  • Linear optimisation

Reporting and charting

  • The Dashboard Summary
  • Chart examples
  • How to plot trends and determine relationships
  • Say it with charts: Using the right chart at the right time

Business planning

  • Implementing a strategic plan
  • Developing the nuts and bolts
  • Key elements of a business plan

Monitoring mechanisms to evaluate business performance

  • Organisational structure
  • Key outputs
  • SMART measurements
  • Key Performance Indicators (KPIs)
  • Balanced scorecard
  • Strategic, Tactical, Operational and Planning (STOP) budgets
  • Post Implementation Reviews (PIRs)

Day 1

All of the sessions will include actionable tools and techniques that will improve your decision making abilities as a finance/accounting/management professional.
The tools and techniques that we will use in the course are available to you for use in your organization. They will prove to be extremely valuable to you in your professional career.

Strategic Planning: The Journey Begins—Developing Actionable Forecasts

Learning formats will include lecture, discussion, examples and cases

  • Analyzing the competitive environment
    - Developing the company’s value proposition
  • Analyzing the company’s competitive position
    - Value Chain Analysis
  • Analyzing the company’s strategic decisions
    -  Building a balanced scorecard
    - Implementing strategic costing
  • Putting the analysis into a financial planning document
    - Building the financial planning model
  • Cases and Examples of best practices in linking strategic objectives to forecasting and budgeting documents

Day 2


Forecasting and Budgeting

Developing and producing forecasting and budget documents that deliver value creation and value capture for the organization

Learning formats will include lecture, discussion, examples, and cases

  • The forecasting process
    - Revenue forecasts
    - Cost Management forecasts
    - Forecasts of capital expenditures
    - Forecasts of financing alternatives
  • Linking the business forecasts to the budgeting process
    - Developing strategic business unit budgets
    - Developing cash budgets for the organizations strategic business units
    - Developing capital expenditure budgets
    - Developing financing budgets
  • Budgeting the Financial Statements: Putting it all together
    - Profit and Loss Statement
    - Statement of Financial Position
    - Statement of Cash Flows
  • Developing rolling forecasts and rolling budgets
    - Forecasting and budgeting based on the key value drivers of the organization
    - Assessing and refined business forecasts and the budgeting process
  • Activity-based budgeting
    - Identifying activities and their cost drivers
    - Forecasting the planned level of activity
    - Calculating cost driver rates

Day 3

Bring budgeting, forecasting and cost management tools in a holistic approach in order to map the strategic objectives that are formulated by management as actionable forecasts and budgets.  In addition, develop the monitoring processes of organizational performance by implementing the balanced scorecard approach for the organization.

The sessions will involve a blend of lecture, discussion, examples and case applications.

  • Developing a Balanced Scorecard to align value creation with value capture
    - Financial perspective
    - Internal business process perspective
    - Learning and Growth perspective
    - Customer perspective
  • Implementing a system of strategic costing in managing value capture
    - Developing the strategic costing model to manage your organization and create a competitive advantage
  • Develop and implementing  a strategy map to manage the value creation process
    - Developing the value proposition
    - What are the organization’s financial strategies?
    - What are the organization’s customer acquisition and retention strategies?
    - What are the organization’s strategies to deliver the value proposition to customers?
    - What are the organization’s learning and growth strategies that will allow them to deliver the value proposition to customers and to retain the company’s intellectual property?

Day 4

The sessions for this day will focus on business partnering and utilizing cost management tools in controlling business operations. As finance and accounting professionals we need to more fully develop our linkages with the strategic side of the organization. We will tie the previous three days learning into an actionable plan to improve the organization’s ability to create and capture value. They are designed to expand your decision making ability as a finance/accounting/management professional.

They will also involve a number of thought provoking exercises and cases that will increase your ability to contribute in a meaningful way to your organization’s continued success.

Business Partnering

  • Performance and reward
  • Collaboration and decision support
  • Influencing: The advisor/client effect
  • The skills agenda
  • Collaboration, engagement, and improving the finance skill-set


Aligning Data and Decision Making

  • The systems approach
  • Decision analysis tools
  • The Science and Art of decision making

Cost Management Tools for Strategic Advantage

  • Utilizing and deploying a management control process that realizes the benefits of innovation and creativity in organizations
    - Diagnostic control systems
    - Belief systems
    - Boundary systems
    - Interactive control systems
  • Developing a responsibility accounting system
  • Internal control systems
    - Assuring implementation of the organization’s strategy
    - Effective risk management in achieving organizational objectives


 

Day 1

Strategic Planning

All too often finance’s role in strategic planning is limited to assembling the numbers. But finance people have skills that can add real value to strategic planning. This module looks at how to leverage core finance skills to improve the strategic plan.

  • Key elements in strategic planning
  • Finance’ role in supporting strategic planning
  • Assessing financial impact of strategic choices
  • Challenging the operational and people impact of strategic choices

The role of finance

The demands placed on the CFO by the CEO, other business executives and the board changes as the political and economic environment changes. This module reviews current demands and looks at how leading finance functions have responded.

  • Finance’s role post global financial crisis
  • Examples of world class finance functions’ roles
  • Do business ethics have a role in finance?
  • Dealing with ethical dilemmas
  • Benchmarking maturity profiles for finance - scorekeeper through to business partner

Management of a Finance Function
Managing a finance function has special challenges because of the range of people (qualified and non- qualified accountants), the range of work (daily processing through to project work) and the inherent conservatism of people attracted to working in finance. This module assesses how this variety impacts the normal people and work management approaches and methods.

  • Management vs. leadership
  • Project management methods for month end / budgets etc
  • Motivating finance people
  • Retaining finance people
  • Managing change in finance

Budgeting Overview
Budgets are often criticised as being fine for financial control but not of much use in running the business. This module looks at best practice for preparing budgets whilst the ensuing modules provides an overview of how the budget process can be modified to make it really useful for the business.

  • Role of budgets
  • The budget process
  • How to engage the business

Rolling Forecasts Overview
This module investigates how the budget process can be modified to make it forward looking and pivotal to running the business effectively.

  • Role of forecasts and the link to strategy
  • Comparing and contrasting budgets and forecasts
  • Identifying key business drivers


Day 2


Budgeting and Forecasting Workshop
(Exercises and Discussions)

Delegates will get an opportunity to explore (via group based exercises) the budgeting process and key planning and forecasting techniques used to build and manage reliable budgets and forecasts, adjusting to reflect changing conditions and to improve performance.

Budgeting

  • Setting budget targets and goals
  • Budget responsibility centres
  • Categorising and regrouping relevant information
  • The key budgetary statements
  • Budgeting Pitfalls

Budgeting Methods

  • Top-down & bottom-up budgeting
  • Zero-based & sctivity based budgeting
  • Multiple-scenario based and flexible budgeting

Types of Budgets

  • Departmental budgets
  • Cash budgets
  • Capital and operating budgets
  • Master budgets

Types of Costs

  • Fixed & variable costs
  • Controllable & uncontrollable costs

Financial Plan

  • Appraisal techniques (net present value, internal rate of return, economic order quantity, simple payback)

Post-Budget Analysis

  • Identifying corrective action

Forecasting

  • Why have a rolling forecast?
  • The rolling forecast process
  • Creating forecast for revenue and expenditure
  • Rolling forecast as a catalyst for change

Budget and Forecasting Templates

  • Actual template
  • Variance reporting template
  • Reporting template

Benchmarking and Reporting

  • Financial and non-financial key performance indicators (KPIs)
  • Milestone monitoring
  • Presenting complex budgets

Annual Budget and Forecasting Cycle

  • Key drivers behind sales, costs and margins
  • Scenario planning for uncertain futures
  • Budget and forecasting timetable


Day 3


Finance Business Partnering - How to find out what Finance’s customers really want

Whilst there are well established ways for identifying and interpreting what external customers want these need modification when being used for internal customers. This module looks at best practice for identifying what finance’s customers want and need.

  • Conducting well-structured interviews
  • Designing carefully considered questionnaires
  • Monitoring customer satisfaction

Management use of Budget and Forecast Data

A revised budget process will produce new information. This module reviews this new information and how the business needs to change to make effective use of it.

  • The different types of reports and their use
  • Developing quality commentary
  • Structuring the monthly management meeting to best use the new information

Risk Management

Risk management is key to effective corporate governance. But very often the way it is implemented is heavy handed and a real burden on the business. This module looks at finance’s role in risk management and how to ensure that risk management in its own processes are cost effective.

  • Role of risk management in corporate governance
  • Finance’ role in supporting risk management
  • Cost/effective risk management in finance's own processes

Managing/Communicating with Board/CEO/CFO

Whilst managing ‘downwards’ has its challenges, managing ‘upwards’ including the people who are Finance’s customers is really challenging and can have a significant impact on your career. This is exacerbated when there are significant events such as M&A or bankruptcy of a major customer. This module looks at how to manage upwards and how to manage in a business discontinuity event.

  • Fundamentals of managing upwards
  • Balancing requirements against resources
  • Managing expectations and maintaining credibility
  • Managing in a business discontinuity


Day 4


Controlling Costs: Economy, Efficiency and Effectiveness

One of the strategic priorities of the finance function of an organisation is to focus on the provision of financial information for planning, controlling and decision making of the organisation’s activities in such a way to ensure efficiency and effectiveness that maximises profits. Thus, controlling costs becomes a strategic thrust that increases profits, improves operations, and maximises shareholder wealth or improve effectiveness for-profit and not-for-profit organisations. From this vantage point, we set out to:

  • Review concepts and techniques for identifying, understanding, and controlling and managing costs to improve economy, efficiency and effectiveness of organisations.
  • Review tools and techniques that are at a manager’s disposal to make short-term operational decisions. 


Day 5


Achieving operational excellence: Lean principles, Six Sigma and Technology Innovation
In today’s fast paced and competitive business environments, executives are not only accountable for controlling costs and increasing revenues, but also for delivering operational excellence through improving productivity. We explore how managers can:

  • Reduce cost, improve speed of service, and improve quality through the adoption Lean principles and Six Sigma methodology.

Organisations are increasingly leveraging emerging technologies to deliver operational excellence, as technology has become the greatest enabler and a significant differentiator in sustaining competitive advantage. We review how companies such as Amazon.com use web services, enterprise technologies such as customer relationship management (CRM), enterprise resource management (ERM) and architectures such as the Service Oriented Architecture (SOA) to manage costs and to deliver operational excellence, with real-world examples.
We will use Harvard Business School (HBS) cases (Superior Manufacturing and Salem Telephone Company) and a book chapter on operational excellence to guide our discussion.

Course summary and close

Case studies for Days 4 & 5 (Required)

Salem Telephone Co.
William J. Bruns Jr.; Julie H. Hertenstein
(Source: Harvard Business School; Product #: 104086-PDF-ENG)

Superior Manufacturing Co.
David F. Hawkins; Jacob Cohen; James W Culliton
(Source: Harvard Business School; Product #:105010-PDF-ENG)

Achieving Service Excellence, 3. Operational Excellence
C M Chang
(Source: Business Expert Press; Product #:BEP247-PDF-ENG)

Additional Reading for days 4 & 5 (Optional)
Gottfredson, M, Schaubert, S. & Saenz, H. (2008) “The New Leader’s Guide to Diagnosing the Business. Harvard Business Review, 86 (2), p62-73.
Simons, R. (1995). `Control in an Age of Empowerment’, Harvard Business Review 73 (2), 80-88.  
Kaplan (1988) 'One cost system isn't enough’, Harvard Business Review, 66 (1), pp 61-66

 

Day 1

 

Strategic Planning

All too often Finance and budgeting teams’ role in strategic planning is limited to assembling the numbers. This module looks at how to leverage their core skills to improve the strategic plan.

  • Finance and budgeting teams’ role in supporting strategic planning
  • Challenging the operational and people impact of strategic choices

Strategy Development and Execution

Integrated approach to financial and operational planning.

  • Key elements in strategic planning
  • Development of critical success factors and meaningful key performance indicators
  • Tracking strategy execution across all levels of the organization

Strategy Alignment

Strategy in tangible form in terms of financials across the organization.

  • Assessing financial impact of strategic choices
  • Translating the impact of defined strategies into operational plans and target metrics

Day 2

 

Budgeting Overview

Budgets are often criticised as being fine for financial control but not of much use in running the business. This module provides an overview of practices for producing outcome driven budgets.

  • Role of budgets
  • The budget process
  • How to engage the business

Rolling Forecasts Overview

This module investigates how the budget process can be modified to take account of events as they unfold (event driven forecasts) i.e. forward looking/pivotal to running business effectively.

  • Role of forecasts and the link to strategy
  • Comparing and contrasting budgets and forecasts
  • Identifying key business drivers

Budgeting and Forecasting Workshop


Delegates will get an opportunity to explore key planning, budgeting and forecasting techniques to produce reliable information to reflect changing conditions and to improve performance.

Budgeting

  • Setting budget targets and goals
  • Budget responsibility centres
  • Categorising and regrouping relevant information
  • The key budgetary statements
  • Budgeting Pitfalls

Budgeting Methods

  • Top-Down &  Bottom-Up Budgeting
  • Zero-Based & Activity Based Budgeting
  • Multiple-Scenario Based and flexible Budgeting

Types of Budgets & Costs

  • Departmental Budgets
  • Cash Budgets
  • Capital and Operating Budgets
  • Master Budgets
  • Fixed & Variable Costs
  • Controllable & Uncontrollable Costs

Budget and Forecasting Templates

  • Comparison to Actuals Template
  • Variance Reporting Template

Rolling Forecasts

  • The rolling forecast process
  • Creating forecast for revenue and expenditure
  • Rolling forecast as a catalyst for change

Day 3

 

Post-Budget Analysis

  • Identifying, implementing and monitoring corrective action

Benchmarking and Reporting

  • Financial and non-financial key success factors
  • Milestone monitoring
  • Presenting complex budgets

Annual Budget and Forecasting Cycle

  • Budget and Forecasting Timetable
  • Benefits of communication and the annual cycle
  • Key drivers behind sales, costs and margins
  • Scenario planning for uncertain futures

Management use of Budget and Forecast Data

A revised budget process will produce new information. This module reviews this new information and how the business needs to change to make effective use of it.

  • The different types of reports and their use
  • Developing quality commentary
  • Structuring management meetings to best use the new information

Day 4

Business Partnering - How to find out what customers really want

Whilst there are established ways for interpreting what external customers want, these need modifying when identifying what the internal customers want for budgeting and forecasting.

  • Conducting well-structured discussions
  • Designing carefully considered strategies
  • Monitoring customer satisfaction

Financial Plan and Appraisal Techniques in action

  • Net Present Value
  • Internal Rate of Return
  • Economic Order Quantity
  • Simple and discounted payback
  • Profitability Index

Communicating with the Board and senior management

This module looks at how to become more influential and manage upwards.

  • Fundamentals of managing upwards
  • Balancing requirements against resources
  • Managing expectations
  • Maintaining influence and credibility

Course Summary and Close

Day 1

Overview

Often the role of the Finance Department is limited to pulling together the numbers. Sometimes a strategic plan lacks concrete number support. Both of these scenarios overlook how a budget/forecast can integrate with strategic planning.

What is "strategy"?

  • Why actions often speak louder than words for successful businesses
  • How a strategy is developed and how/why it continues to evolve
  • Quantitative vs. Qualitative consideration

Laying the foundations for a successful business

  • Mission and vision statements
  • Strategies
  • Objectives
  • Goals

Principles of effective communication

  • Identifying stakeholders
  • Understanding their needs
  • Talking their language

Developing and executing a strategy

  • Development and analysis
    • Reviewing existing competencies
    • SWOT analysis
    • Porter's Five Forces
    • PESTEL analysis
    • Ansoff's matrix
    • Blue Ocean Strategy
  • Execution
    • Right people, right time, right now
    • Total quality management
    • SMART implementation

A strategic perspective in budgeting and forecasting

  • Definitions of budgeting and forecasting

Importance of business structure

  • Business structure
  • Physical structure
  • Operational structure
  • Responsibility structure
  • Financial structure
  • Cost models:
    • CVP analysis
    • Activity based costing
    • Activity based management
    • Value chain analysis

Day 2

Budgeting

Budgets are often criticised by end users for constraining them. Day 2 looks at how to make the budget and
the budgeting process useful for the business.

Introduction

  • "Best practice" quantitative budgeting
  • The factors that govern the model structure
  • The foundations of a budget model
  • Why templates don’t work

Budget management

In today's challenging business environment, cost management and cost reduction are keys to business
success.

  • Managing costs
    • Understanding the drivers of cost
    • Variable vs. Fixed cost issues
    • Cost Volume Profit (CVP) and breakeven analysis
    • Activity based management and activity based costing principles
    • Value chain analysis
    • Non-financial costs: e.g. staff morale, customer loyalty
  • Proactive
    • Cash discount/Price incentive schemes
    • Inventory management
    • Optimising assets’ economic lives
    • Lease vs. Buy
    • Reducing controllable costs
    • Refinancing/Amending capital structure
  • Reactive
    • Accounts payable teams
    • Credit collection agencies vs. Debt factoring
    • Supplier negotiations
    • Vertical integration/Partnerships

Cash flow and working capital management

Considering financing requirements

  • Returns on capital
  • Returns of capital
  • Key concepts of financing:
    • Risk
    • Return
    • Ranking
  • Analysis of results
  • Accounting ratios

Further considerations

  • The budget cycle
  • Reasons for budgeting
  • Types of budgets and budgeting methodologies
    • Zero based budgeting
    • Incremental
    • Top down
    • Bottom up
    • Top down and bottom up
  • Budget risk
  • Factors to consider in developing a budget
  • Practical issues
    • Model bias - how to get stakeholder ownership
    • Methods of building model assumptions
    • Building a working analysis from history
    • Being able to update with actual data as it becomes available

Practical example: Developing a budgeting model

Day 3

Variance analysis and forecasting in context

Improve your forecasting skills to turn historical data into future management information to assist your strategic planning, emphasising the importance of targeted variance analysis.

Risk-based budgeting and forecasting

  • Why do we need a risk perspective in budgeting/forecasting?
  • Risk factors affecting your budget/forecast
  • Risk vs. Uncertainty
  • Types of risk
    • Business
    • Operational
    • Financial
    • Enterprise
  • Tools of the trade
  • Alternative to point estimate modelling
    • Scenarios
    • Sensitivities
    • Simulations
  • Key driver analysis
    • Creating a waterfall chart
    • Creating a tornado (sensitivity) chart
    • Deterministic vs. Probabilistic methodologies

Forecasting in context

  • Common methods of financial forecasting
    • Create formula based data forecasts
    • Regression analysis
    • Bias and error estimation
    • Scenario modelling
    • Using PivotTables
    • Using 1-D and 2-D data tables
    • Using Scenario Manager
    • Calculating and graphing moving averages
    • Defining and solving problems: e.g. Goal Seek vs. Solver

Day 4

Analysis and reporting

What do we do with budgeting/forecasting results? This session discusses the analytical and business skills for your work place and how you would manage the process strategically in practice.

Key outputs of a budget model

  • Income statement vs. Cash flow
  • Confirming key outputs
  • Deriving key inputs
  • Developing KPIs

Variance analysis

  • Flexible budget variances
  • Operational vs. Planning issues
  • Key variances
    • Sales price
    • Sales volumes
    • Sales mix
    • Materials
    • Labour
    • Overheads
  • Modelling variance analysis

Data analysis

  • Using trend analysis
  • How Goal Seek, Scenario Manager and Solver may help
  • Revisiting risk: The role of scenario, sensitivity and simulations analyses
  • Strategic options analysis
  • Real options analysis
  • Six Sigma
  • Linear optimisation

Reporting and charting

  • The Dashboard Summary
  • Chart examples
  • How to plot trends and determine relationships
  • Say it with charts: Using the right chart at the right time

Business planning

  • Implementing a strategic plan
  • Developing the nuts and bolts
  • Key elements of a business plan

Monitoring mechanisms to evaluate business performance

  • Organisational structure
  • Key outputs
  • SMART measurements
  • Key Performance Indicators (KPIs)
  • Balanced scorecard
  • Strategic, Tactical, Operational and Planning (STOP) budgets
  • Post Implementation Reviews (PIRs)
Why us


We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product


 

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