Strategic Planning, Forecasting & Budgeting

Course Overview As an accountant, do you want to become more than a "number cruncher" and add value to your organisation through your strategic recommendations? As a business manager, do you want to know where to look in the sea of budgeting and forecasting numbers for your strategic planning and analysis? This practical course provides an introduction to the analysis that can be built into forecasting and budgeting developed in spreadsheets. Using simple statistical tools and an overview of some of Excel's little-known functionalities, this course will provide attendees with a pragmatic approach to enhance the efficiency, effectiveness and presentation of their budgeting forecasting. Insight+Hindsight=Foresight Aimed at all professionals involved in the budgeting and forecasting process, this course shows you how to reduce risk in your decisionmaking and your recommendations by using budgets, qualitative and quantitative analysis, as well as a "kit bag" of tips, tools and techniques. Over four intensive days, this course will: Help attendees to understand, develop and execute a strategic business plan Link budgets and forecast to the business' strategy Provide a practical understanding of Microsoft® Excel's data forecasting and charting functions Quantify the risks and rewards of estimating future assumptions and outputs Explore different forecasting and trending methods Equip attendees with several ways to confirm and optimise key outputs, leading to better decisions Teach attendees several ways to analyse and present key outputs Methodology This course will show participants how to improve forecasting techniques, using real-world examples, to turn historical data into future management information. It will provide participants with the analysis that can be built into forecasting and budgeting by using simple statistical tools and techniques, participants will learn a pragmatic approach to enhance the efficiency and effectiveness of their forecasting and analysis. Who Should Attend? This course will suit financial analysts, management accountants and all professionals who have vested interests in forecasting trends at the strategic, tactical, operational and planning levels. 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 Supporting publication:
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)