INTRODUCTION

This  training course on Budgeting for Performance Management is focused on the imperative facing all 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.