Effective Business Planning & Budgeting
| Objective |
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To provide operating managers with a perspective of the planning process and the elements of successful planning, execution and measurement of outcome, and basis for improvement. |
| Upon Completion |
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Over the 2-days period, participants to this course will gain holistic knowledge in Finance as well as valuable business insights through guided instruction and collegial discussions with the speakers. Participants would -
- Acquire a basic approach for developing business plans and budget
- Learn the use of budgets as management tools to manage their operations, costs and revenue performance
- Ability to evaluate and contribute to developing planning strategies and actions for business performance
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| Audience |
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Business managers and operational executives with cost and revenue and budget or planning responsibilities. |
| Methodology |
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Topical discussions, planning exercises and self reflection. |
| Duration |
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2 days |
Course Outline
| I. |
Performance management
a) Understanding business performance
- Defining business performance
- Components of performance
b) Cost and revenue centres
- Defining cost and revenue centres
- Performance of cost and revenue centres
c) Performance indicators
- Financial indicators
- Non-financial indicators
d) Return on investment
- Defining ROI
- Key drivers of ROI
- Cost of capital & the DCF
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| II. |
Business planning
a) Forms of business planning
- Corporate planning — long and short term
- Project planning
b) Strategic planning
- Defining strategy
- Business strategies
c) Operational planning
- Nature of operational planning
- Revenue and costs
d) Business forecasting
- Business trends
- Capacity forecasting
- Capital expenditure planning
- Forecasting revenue and costs
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| III. |
Business budgeting -1
a) Budgets as management tools
- Management by objectives
- Responsibility accounting
b) Key budgetary concepts
- Overview of a budgetary system
- Budgetary policies and practices
c) Prerequisites to effective budgeting
- Budge policies
- Key budget factors
- Budget management
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| IV. |
Business budgeting -2
a) Budget construction – revenue budgeting
- Revenue components
- Revenue growth assumptions
b) Budget construction – cost budgeting
- Cost revenue relationships
- Cost components and assumptions
c) Budget construction – cash flow budgeting
- Revenue and cost components
- Credit and collection practices
- Capital expenditure plans
d) Performance analysis – managing performance
- Budget variances and their measurements
- Variance analysis and causes
- Managing variances
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