Budgeting, Forecasting and the Planning Process
Many organisations use budgeting and forecasting as a means of providing and updating tactical operating plans and controlling costs; but world class organisations use these, and other powerful tools, within a framework specifically designed to develop and execute business strategy and manage organisational performance.
This leading-edge seminar explains:
· The key steps in designing and executing effective business strategies
· How to translate strategy in to budget objectives to manage execution
· The most useful forecasting techniques for planning and budgeting
· Best practice in preparing and implementing budgets
· How to use budget variances to monitor and learn about strategy execution
· How the power of Excel can be used in forecasting and budgeting
· Modern approaches to profit and strategic decision making
The objectives of the seminar are to enable delegates to:
Strategic Planning and Management
· The 21st century Finance function
· Creating and delivering value to key stakeholders
· Planning for success
· What strategy is
· Organisational vision and goals
· Strategic capabilities as the basis of competitive advantage
· Strategic analysis tools: PESTLE
· Strategic analysis tools: Five forces analysis
· Strategic analysis tools: SWOT analysis
· Approaches to formulating strategy
· Strategy in action: understanding your business model
· Strategic implementation and management
· Balancing key stakeholder objectives
· Measuring shareholder value
· Strategic management tools: balanced scorecard
· Case study: a strategy to balance customer and shareholder objectives
Forecasting Tools and Applications
· The forecasting process and its applications
· Basic forecasting techniques
· Projecting sales revenues
· Identifying causal influences on sales revenue
· Time series analysis and forecasting
· Using trend and seasonal variation for revenue forecasting
· Using linear regression to forecast costs
· Understanding and using correlation
· Dealing with common problems to improve forecasts
· Pricing strategies
· Advantages and disadvantages of cost based pricing
· Pricing based on cost leadership and differentiation
· Using the Strategy Clock in pricing decisions
· Product life-cycle and pricing strategies
· Value based pricing
· Understanding risk
· Identifying key business drivers
· Using ‘what-if’ forecasts to model risk
· Case study: using Excel to build a ‘what if’ model
Understanding and Planning for Costs
· Profit as a measure of value
· Understanding cost behaviour
· Fixed and variable costs
· Direct and indirect costs
· The cost-volume-profit chart
· Costing and its objectives
· Traditional approach : absorption costing
· Traditional approach : standard costing
· Traditional approach : marginal costing
· Improving profit – key concepts and common mistakes
· Activity based costing (ABC)
· Strategic decision making
· Strategic capability and avoiding the Spiral of Death
· How to cut costs strategically
· Case study: how costing methods affect strategic decision making
Budgeting and the Strategic Management Framework
· What is a budget?
· The budget and the strategic management framework
· Strategic management tools: strategy maps
· Using strategy maps to translate strategy
· Using budgets to convert strategy in to operating plans
· The objectives of budgeting
· Steps in preparing a budget
· The master budget
· Using budgets to manage organisational performance
· Responsibility accounting and variance analysis
· Three important types of meeting in performance management
· People and budgets
· Motivational aspects and dysfunctional budgeting
· Criticisms of traditional budget methods
· Activity based budgeting (ABB)
· Beyond Budgeting
· Using rolling forecasts to manage organisational performance
· Case study: using strategy maps to translate strategy in to budgets
Financial Strategy and Planning
· Three key decisions in financial strategy and planning
· The constraints on financial strategy
· Understanding the key drivers of cash flow
· Understanding and managing working capital
· Using Excel to build cash flow forecast models
· Understanding the time value of money
· Capital investment decisions and appraisal tools
· Discounted cash flow (DCF) and net present value (NPV)
· Considerations in financing the organisation
· Choosing the right source of finance
· Calculating cost of equity
· The dividend decision: whether to pay and how much to pay
· Calculating cost of debt
· Calculating the weighted average cost of capital (WACC)
· Funding strategy: finding the optimum capital structure
· Case study: using Excel to build a cash flow forecast model
A variety of methodologies will be used during the course that includes:
· (30%) Based on Case Studies
· (30%) Techniques
· (30%) Role Play
· (10%) Concepts
· Pre-test and Post-test
· Variety of Learning Methods
· Lectures
· Case Studies and Self Questionaires
· Group Work
· Discussion
· Presentation
This rate includes participant’s manual, Hand-Outs, buffet lunch, coffee/tea on arrival, morning & afternoon of each day.
Daily Course Timings:
08:00 - 08:20 Morning Coffee / Tea
08:20 - 10:00 First Session
10:00 - 10:20 Coffee / Tea / Snacks
10:20 - 12:20 Second Session
12:20 - 13:30 Lunch Break & Prayer Break
13:30 - 15:00 Last Session