Course Content:

 

INTRODUCTION

 

organisations to allocate scare resources to create and deliver value to their key stakeholders. In profit making businesses this means creating value for customers and shareholders; whilst in the government and public sectors this means effectively delivering ‘value for money’ services to clients with economy and efficiency. The most successful organisations achieve these strategic goals within an effective performance management framework in which budgeting and cost management have key roles to play.

 

 

 

Budgets are the tool with which strategic high level long-term plans can be translated in to detailed operating plans, which facilitate the implementation and execution of organisational strategy.  Cost management is at the heart of an effective system for allocating scarce resources to key processes, products and services to maximise the value created for customers, clients, shareholders and funding providers. This leading edge course will focus on recent development in both the budgeting process, and the approach to cost analysis and management.

 

 

 

Objectives

 

 

 

At the end of this Budgeting For Performance Management training course, delegates will be able to:

 

 

 

Understand now budgeting fits in to performance management

 

 

 

Combine financial and non-financial metrics to budgeting

 

 

 

Understand and compare different approaches to costing

 

 

 

Master traditional and advanced approaches to budgeting

 

 

 

Apply a strategic approach to cost management and reduction

 

 

 

Day 1

 

 

 

Budgeting and Business Performance Management

 

 

 

Creating value for key organisational stakeholders

 

 

 

Business Performance Management (BPM) frameworks

 

 

 

The fundamentals of competitive strategy

 

 

 

The vital role of budgeting and cost management in BPM

 

 

 

Principles of financial and management accounting

 

 

 

Key financial measures of value creation

 

 

 

Using strategy maps to integrate non-financial measures

 

 

 

Day 2

 

 

 

Cost Planning and Cost Management

 

 

 

Defining and understanding cost behaviour

 

 

 

The role of costing in performance management

 

 

 

Traditional costing: absorption costing

 

 

 

Traditional costing: marginal costing and break-even analysis

 

 

 

Traditional costing: standard costing control frameworks

 

 

 

Developments in costing: Activity Based Costing (ABC)

 

 

 

A strategic approach to cost management and reduction

 

 

 

Day 3

 

 

 

Steps and Techniques in Budget Preparation

 

 

 

Forecasting techniques for budgeting

 

 

 

Business Intelligence and budgeting

 

 

 

Diagnostic and predictive analytics for budgeting

 

 

 

Statistical tools and techniques in sales forecasting

 

 

 

Statistical tools and techniques for cost forecasting

 

 

 

Steps in the budgeting process

 

 

 

Budgeting and managing capital expenditure (CapEx)

 

 

 

Cash flow forecasting and budgeting

 

 

 

Styles and approaches to budgeting

 

 

 

Human and behavioural aspects of budgeting

 

 

 

Day 4

 

 

 

Using Budgets to Monitor and Manage Performance

 

 

 

Principles of Responsibility Accounting

 

 

 

Variance analysis and performance management

 

 

 

Standard costing and cost management

 

 

 

Using data analytics to find the root cause of variances

 

 

 

Data visualisation techniques for financial reports

 

 

 

Designing budget reports

 

 

 

Dashboards and their use in performance management

 

 

 

Designing tactical dashboards for budget management

 

 

 

Day 5

 

 

 

Beyond Budgeting to Adaptive Management

 

 

 

Shortcomings of traditional approaches to budgeting

 

 

 

Beyond Budgeting case study

 

 

 

Moving towards decentralised performance management

 

 

 

Replacing budgets with rolling forecasts

 

 

 

Using key driver forecasts for risk management

 

 

 

Using balanced scorecard to manage Key Performance Indicators

 

 

 

Why traditional budgeting still has a key role to play