Course details

Overview ?

Introduction

A good understanding of fundamental financial concepts enables professionals at every level to make better strategic decisions and achieve improved performance. This seminar is designed to increase understanding on how finance and accounting tools can play a significant role in supporting the strategic planning and decision-making process. It will provide insight on how financial metrics connect with other non-financial measures to assess that the organizations’ goals and objectives are met. In doing so, the seminar will also explore the role of finance and accounting concepts within practices such as budgeting, costing and performance management. Overall, this highly interactive seminar has been designed to review a number of techniques available to professionals to support their strategic decisions and evaluate the multiple performances achieved.

Seminar Objectives

The objectives of this seminar are to enable delegates to:

Take strategic decisions supported by a solid financial understanding
Link strategic planning with budgeting, costing and performance measurement
Support the achievement of goals and objectives with ad-hoc resource allocation
Understand the structure of the financial statements (income statement, balance sheet, and cash flow statement)
Understand how costs behave
Explore traditional and innovative approaches to Budgeting and Cost Control
Use the technique of discounted cash flow (DCF) for capital budgeting and evaluation of capital project investment, using net present value (NPV) and internal rate of return (IRR)
Connect the financial and non-financial elements of strategic decisions and analysis

Training Methodology

This seminar is presented in a very user-friendly way to suit individuals with varying levels of financial knowledge and experience. The seminar will be conducted along workshop principles with formal presentations, case studies and interactive worked examples. The seminar combines theory and practice. The purpose is to use a mix of proven learning techniques to ensure maximum understanding, comprehension and retention of the information presented.

Our aim is for this to be an enjoyable learning experience.

Organizational Impact

The organization will gain through:

Recognition of the importance of finance and accounting as a critical component of the strategic decision-making process, and the development of managers to be able to think strategically to:
- understand and anticipate the financial factors that form the basis of strategic decision-making
- evaluate the financial consequences of alternative strategic decisions
- all of which should ultimately result in better strategic planning, and improved company performance
Increased awareness of the importance of budgeting, costing and performance measurement for strategic purposes
Use of the financial statements and other internal financial documents such as cost analysis and budgets that will help managers make more informed and therefore better management decisions
Use of techniques that will support the company in its more effective planning and evaluation of capital investment projects;
Increased awareness of the connections between budgeting, costing and strategic planning
Ability to connect financial and non-financial drivers of the business
The sharing of knowledge gained throughout other divisions and departments of the company.

Personal Impact

Delegates will develop an understanding of:

The influence of financial considerations on an organization’s strategic decision-making
How to understand the financial statements: balance sheet; income statement; statement of cash flows, in order to make more informed and therefore better financial decisions
How to link budgeting, costing and performance measurement
How to develop and manage the financial aspects of their role more effectively, enhance their performance, broaden their role, and appreciate how their decision-making may impact on their own department or business unit and the organization as a whole
How to interpret the connection between the financial and non-financial drivers of the business
How to improve their self-confidence in dealing with finance and financial professionals
How to be better placed to liaise effectively with other professionals on financial issues.

Who Should Attend?

An understanding of how finance and accounting influences strategic decision-making is crucial for every role and at every management level in the organization. In addition to interns, financial analysts, financial controllers, accountants and others active in the planning process this seminar has been designed for business professionals from:

sales and marketing
engineering
project management
purchasing
logistics
human resources

and any other non-financial areas that need or wish to understand the financial aspects of the strategic decision-making process.

Programme Outline

Day 1 – Business Fundamentals: the link between the Management Systems and Strategic Planning

What is strategy?
The strategic management system
Mission, Vision, Goals and Objectives: exploring the links
Strategic planning: the key features
Corporate objectives, action and initiatives: the concept of accountability
Budgeting, Costing and Performance Measurement to support strategic decision making

Day 2 – Fundamentals of Financial Statements and the link with the budget

Financial statements – key concepts
Balance sheet
Income statement
Statement of cash flows
The key role of planning and budgeting
Budgeting future financial statements

Day 3 – Budgeting and Costing to support strategic decisions

Resources and costs to support strategic decisions
The different typologies of expenses to be budgeted
Fixed and variable expenses
Breakeven analysis and contribution margin
Direct and indirect costs
How to design and refine costs systems for decision making purposes

Day 4 – Capital Budgeting

Future values, present values and Discounted Cash Flow
Capital budgeting principles
Methods of evaluating capital investment projects
Accounting rate of return (ARR) and payback
Net present value (NPV) versus internal rate of return (IRR)
What is the method used in your organization to select and evaluate projects/investments?