Target
√ Understand the value of strategic budgeting management and how to combine the operation with strategy.
√ Master the budget consideration, setting and application under strategic target
√ Learn to make the budget as whole company’s role
√ Know the key point of budget and learn the communication skill with other department
√ Master the relationship between budget and KPI. Learn to deal with the influence of budget adjust.
√ Know the abuses of budgeting in actual job
Background
As we all know, budget management is the job for the whole company. However, finance department take more responsibility especially when the budget was not so good. As a promotion sector, we can neither pre-empt nor inaction. What can we do?
This curriculum invited budget management expert to share the knowledge on the budgeting methods and promotion experience. Aim to help financial managers indeed understanding the enemy relationship between budgeting and KPI.
Knowledge Confused
※ We have to do budget, but it doesn’t work.
※ Other departments think that budget is nothing to do with them.
※ Sale’s budget is always difference with the truth, which make the KPI cannot play the role.
※ Lose control of the expense before the event finishing.
※ It’s serious in budget bargain.
※ We cannot spend a little out of budget, can we? We can spend money under budget, can’t we? Few companies can execute budget well, although all of us know that budget is one of the most important job in company management which link the operation with target.
Trainer
Shelley, Vice President, China Finance Executive Council
Over 20 years experience in Finance, Custom, Tax, Treasury, Customer service, Logistic, Insurance, Legal, project management and IT business, serviced as Valmont, ITW, VEOLIA, GM of Fortune Global 500 enterprises. Owned Senior Accountant in PRC, stage II ACCA, SIFM. Be familiar with PRC GAAP, IAS and US GAAP.
Working Experience
◆ Veolia Group Company LG project (Fortune 500). Environment construction and operation Company. No.1 in the environmental industry. Finance Controller for Finance Dept.
◆ Shanghai General Motors Co.,Ltd(Fortune 500). Auto Manufacturing Industry. Top 3 in the automotive industry. Manager for payable and manufacturing group.
◆ ITW Performance Polymers& Fluids, China (US Top 200) include one manufacturing plant and three trading company. Controller for Finance Dept, Customer service Dept, ERP system, Legal business.
◆ Valmont industry China Company which is manufacturing industry and invested by US. And it’s public Company. Be China Finance Controller and in Charge of 4 plant within China Territory.
Training Strength
The training tone is praised by the participants in the international popular humorous, interactive experience teaching methods. The training is not to "teach", but rather to "do" to let participants master these principles. Participants enjoy the training and keep the knowledge in mind in happy learning.
Training Method
Classroom Teaching – Case Analysis – Group Discussion – Medium Sharing - Penetrating Communication Skill
Course Arrangement
Day One Strategic Budgeting management philosophy, frame construction and setting skill | Day Two Budget operation obstacle and control performance analysis |
09:00-10:00 | Value and each sector’s responsibility of strategic budgeting | 09:00-10:00 | Budgeting setting method, skill and challenge——budgeting process（2） |
10:00-11:30 | Budgeting management framework concept based on the strategic target | 10:00-12:30 | Effective operating and improvement of budgeting |
11:30-12:30 | Budgeting setting method, skill and challenge——preparation before budgeting | 12:30-13:30 | Luncheon |
12:30-13:30 | Luncheon | 13:30-16:00 | Relationship between budgeting and KPI |
13:30-16:30 | Budgeting setting method, skill and challenge——budgeting process（1） | 16:00-16:30 | Case sharing of budgeting risk management |
16:30-17:00 | Participants summary | 16:30-17:00 | Participants summary |
Course Outline
Preface – Case sharing: Value and influence of strategic budgeting
A. Clear the value and each sector’s role in strategic budgeting
1. Budget management system with optimal resources guided by strategic role
2. Each sector’s responsibility in budget management
3. The changing role of finance manager in budget management
● What should we do? And what kind of challenge should we face?
● How to promote strategic budget management through senior executive
B. Budgeting management framework concept based on the strategic target
1. Misunderstanding of budget management
2. From traditional budgeting to comprehensive budget management
3. Requirement of strategic budget management
● Involvement and attention of senior executive
● Influence of organization structure
● Process system
● Informationization degree
● Influence of performance management system
4. Under what kind of environment that budgeting can work?
5. How to find out the fundamental issues to set an available budget management system
● Different target means different budget management system
● Different character means different budget management system
C. Budgeting setting method, skill and challenge
1. Manager’s job: preparation before budgeting
● Budget target confirmation and budget method choice
● Budget postulated conditions setting process
● Three budget abilities of non-financial manager
● Financial function and influence in budget preparation
2. Budgeting process, method and skill
● Operation process of budgeting
● Budgeting of human resource cost
Requirement of HR budget
Planning skill of HR budget
● Budgeting of investment
Process and method of investment budgeting
● Budgeting of revenue
Two kinds of revenue budget target
Model of revenue budgeting
Special remarks of project sales budgeting
● Budgeting of purchasing
Difficulties of purchasing budgeting
Process of purchasing budgeting
Purchasing budgeting skill
● Budgeting of production
Process of production budgeting
Method and skill of production budgeting
Attentions of production budgeting
● Budgeting of cash
Meticulous level of cash budgeting
Attentions of cash budgeting
● Collection and balance of budgeting report
D. Effective operating and improvement of budgeting
1. Rolling budget
● When should we do rolling budget?
● Synergistic effect to different sectors of rolling budget
2. Budget analysis and improvement
● Exhibition of budget different
● Data support for budget analysis
● Budget warning system
3. Let the senior executive find the real difference
4. Budget risk management
● Risk recognition system
● Risk evaluation method
● Risk response framework
● Budgeting bargain and year-end rush to spend
5. Special management of high-risk budget matters
● How to break down high-risk events in the budget table
● Process management of high-risk events
● Three targets of high-risk events
6. Motivation resolve of budget adjustment
● Relevance budget adjustment to KPI
● How to change KPI after budget adjustment
7. Common behavior analysis in budget enforcement
E. Relationship between budgeting and KPI
● Budget target and KPI
● How to combine budget management with KPI
● High requirement to financial department
2. Performance appraisal method
3. KPI system
4. BSC (balanced score card)
5. Budget KPI
6. Rewards and punishment
F. Case sharing of budgeting risk management