Budgeting: Planning, Forecasting, What-if Analysis & Reporting

Day One

    Introduction

·          What is strategic planning & why do it

·          Limitations of strategic planning

·          Specific problems associated with strategic planning

·          Assessment tools including SWOT, Porter’s 5-forces, GE & BCG models

·          Developing the plan & strategic objectives

   Mapping your strategy

·          Strategic Planning Process Flowchart

·          Competitive Analysis

·          SWOT Analysis

·          Strategic Goals

·          Why we have to plan before we forecast

Day Two

   Introduction to Forecasting

·          What is forecasting?

·          Strategic role of forecasting

·          The forecasting process

·          Forecasting demand

·          Sales forecasting using various methods in Excel© (LINEST, LOGEST, etc)

    Qualitative Forecasting models

·          Market surveys, Delphi, Life cycle analogy, Expert opinions, Sales force polling

   Quantitative Forecasting models

·          How the FORECAST, GROWTH & TREND Functions in Excel© simplify the forecasting process

·          The Components of a Time Series

   Day Three

   “What-if” analysis

·          What is Scenario analysis

·          What is Sensitivity analysis

·          What is Simulation analysis

·          What is Optimization

 What-if tools

·          How to develop random numbers using Excel©

·          How to use Goal Seek in Excel©

·          How to use Solver in Excel©

 Day Four

  Budgeting and the Management Process

·          What is a budget

·          Why & how is it different from a forecast

·          Budgets - the financial expression of the operating plan

·          The purpose of budgets – planning & control

·          Advantages and limitations of budgets

   The Framework for Budgeting

·          Elements of the budget framework

·          Types of budgets: flexible, zero-based, static

·          The pro forma financial statements

·          Operating versus non-operating revenue

·          Listing of major budgeting software

·          How to evaluate budgeting software

 Budgeting Costs and Expenses

·          Operating expenses - selling, G&A, R&D

·          Direct variable expenses

·          Indirect Fixed expenses

·          Assignable and non-assignable expenses

    Day Five

   Reporting & Meaningful Measurements

·          Variance analysis

·          Calculating different types of related variances

·          Performance measurement as a linking and integrating tool

·          The Balanced Scorecard

·          Operational

·          Financial

·          Customer

·          Learning & growth

    Reporting

·          Reporting

·          Internal – managerial

·          External – financial & regulatory

Linking it together

·          Linking strategic planning , forecasting budgeting and reporting

·          Reporting and performance analysis