Managerial Planning
Undertaking a major expansion project is a time-consuming and resource-consuming task for an organization of any size. Investing in training is key to success in corporate management. The following outline is for a training session recommended as a refresher prior to undertaking a major expansion project.
Discussion of critical dimensions involved in long-term business planning:
- Key factors relevant to company’s future progress
- Appropriate techniques to be utilized in forecasting future developments
- Data sources to aid in supporting strategic choices
Theory and application of capital budgeting
- Why is formal planning imperative and must use a capital budgeting framework that compares benefits and costs
- Complexities of Investment planning — rates of inflation, data availability, relevant rate of return, measuring expected cash flows
Management Information Systems and Financial Control
- Operational budgeting and importance of period comparison of actual and budgeted profit performance
- Currency translation in international scenarios versus measuring performance in local currencies
- Group exercise: measuring the impact of chosen methods
Strategic Costing
- Market-driven costing versus behavioral costing
- Group exercise: measuring the impact of chosen methods
Performance evaluation of operations
- Importance of consistent approach across units
- Unit versus managerial performance
- Establishing performance criteria and performance standards
- Best practices in performance evaluation
Group exercises will include the following cases from Harvard University:
Finance Simulation: Capital Budgeting By Timothy Luehrman:
In this single-player simulation, participants can act as members of the Capital Committee of New Heritage Doll Company, tasked with selecting and allocating capital across the company’s three divisions.…: https://hbsp.harvard.edu/product/3357-HTM-ENG
Assessing a Company’s Future Financial Health By Thomas Piper
The case provides students with (1) an understanding of the essence of long-term financial health; (2) familiarity with the calculation and meaning of various financial ratios; and (3) an understanding of the influence of a company’s operating and competitive characteristics on its investment in various type assets, on the profitability of these investments, and on the financial structure of its balance sheet. The case also allows a discussion of (1) the incomplete and lagging nature of financial measures; (2) the influence of financial measures on behavior; and (3) the reality that financial analysis often results in better, more focused questions to be asked of management, not conclusive answers: https://www.hbs.edu/faculty/Pages/item.aspx?num=39642
This training framework has been suggested by AllaVolodina who teaches in university and corporate settings. Alla has created a variety of detailed training outlines and course outlines (at York University) aimed at improving efficiency and effectiveness of operations. Check out AllaVolodina blog for more articles: allavolodina.com.
