Advanced budgeting, planning and forecasting

Economic uncertainty, rapid technological changes, shifting trends, and fierce competition create a challenging business environment. Traditional planning, budgeting, and forecasting processes often struggle to cope, leading to frequent reforecasting and revisions. This course delves into the root causes of budgetary and forecasting challenges and presents advanced planning techniques and innovative budgetary processes tailored to meet today's demands. By attending, you'll gain insights into the pressures on planning, budgeting, and forecasting, and learn about alternative processes and techniques that enhance transparency and predictive capability. These approaches aim to better align the budget, business plan, and strategy. This course is suitable for finance directors, senior finance and management personnel, and staff involved in business planning.

By the Advanced Budgeting, Planning and Forecasting course, delegates will be able to understand: How to implement advanced planning and control techniques into your budgeting process Know how to integrate the budgeting process with the development of the company’s long-term strategic vision Know how to provide a decision support structure that provides timely and useful information to decision makers Successfully build integrated planning, budgeting and reporting process Know how to forecast costs and revenues with greater confidence Apply management tools to the budgeting process that contribute to strategic goals Effectively manage the budgeting process Identify key performance indicators for effective and focused decision making Develop ways to increase profitability and performance through streamlined planning and reporting

Day 1: Budgets in Today’s International environment Planning In the Organization Organizational Planning and Control Framework The Product / Information / Decision Support Cycle Strategic, Tactical, and Operational Forecasts The Recognition of Risk in Models Using Budget Models for Simulation Purposes The Drive Toward Shareholder Value (EVA®) The Strategic Plan The Purpose of Planning and Budgeting in Business Defining the Strategic Approach to Business Planning Defining Strategic Assumptions Building the Strategic Planning Model Using Financial Data Various Strategic and Tactical Approaches to Business Planning Defining the Decision-Support Model: Assumptions / Goals and Key Success Factors Day 2: Analysing the Historical Data Using Excel® Recognizing the Basic Patterns Inherent in Historical Data Using the Exploratory Data Analysis Tools Available in Excel® Development of Time Series Models Using Histograms, Moving Averages, Exponential Smoothing and Regression Analysis Using Regression Analysis as a Predictor and Estimator Mastering the Use of Exponential Smoothing as a Data Analysis Tool Single Regression vs. Multiple Regression Validation of Time Series Analysis Day 3: Approaches to Budget Development Types of Budgets Zero Base Budgeting Activity Based Budgeting Rolling Budgets Operational Unit Budgeting Programme Budgeting Developing the Cash Budget Using Activity based Budgeting Developing the ABB Application Model Budgeting for Processes Rather than Departments Defining Key Cost Drivers Defining Key Activities Development of ABB Cost Standards Developing the Activity-Based Budget Day 4: Strategic and Operational Cost Analysis Techniques Types of Costs Identifying Fixed, Variable and Semi-Variable Costs Application of Regression in the Development of Budgets Building the Financial Simulation Model Using Articulated Financial Statements Building the Financial Simulation Model Using Simulation Developing Manufacturing Standards Material Standard Development Labour Standard Development Factory and Corporate Overhead Standard Development Variance Analysis Day 5: Defining and Testing Optimisation Techniques in Models Using Excel® Basic Structure of All Optimisation Models Different Forms and Applications of Optimization Models Developing a Financial Optimisation Model Performing Sensitivity Analysis of an Optimisation Model Interpreting the Solution of an Optimisation Model to a Non-Technical Manager Lessons Learned