3 Day Programme
The purpose of this training is to give the delegates an understanding of financial principles, practice and terminology in an organisation. Additionally, the course aims to provide the delegates with the knowledge about how their daily operational decisions and actions affect the financial performance (bottom line) of the business.
Financial overview – The financial model of the business, including:
The business plan and the financial performance. Why turnover is vanity and profit is sanity!
Financial terminology – Demystifying financial jargon, words and phrases such as:Capital, Equity, Assets, Revenue, Profit, Overheads, Return on Investment, Return on Sales, Return on Capital Employed.
A quick tour of the balance sheet – A look at how information is structured and presented, including:
The items that make up the expenditure and the items that are included as income or revenue.
Winning strategies scenario – Delegates become directors of ‘Waveriders’, and take responsibility for the consequence of their decisions on the financial performance of the business. Includes elements of SWOT analysis and Strategic decision making.
Cash flow – Monitoring money in and money out, the bath tub analogy! To include: Why cash flow is different from revenue and profit, and how it is managed
The true cost of waste – Recognising non value adding activities which includes: Using the cost of waste iceberg to identify hidden business costs. We will also look at a method of measuring personal waste in the business.
Right First Time – The need for early problem detection and resolution:
Using the 1-10-100 model we will look at the financial consequence of not solving problems early and making poor decisions. Includes the ‘zero defects’ philosophy and root cause analysis.
Preventative measures – How to make sure costly issues don’t re-occur and how to prevent problems from happening. Includes the Japanese technique of Poka Yoke (failsafing) and a reverse contingency diagram.