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Focus on taking initiative

Finance for Everyone is a challenging simulation.  Teams have to address competing problems of oversupply, inventory build-up, working capital, cash flow, debt repayment. The workshop also introduces formal exercises in budgeting, cash flow forecasting, and ratios.

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Understanding Position and Performance

The workshop learning begins with the Income/Outcome simulation board and the modeling of simple financial statements for use in tracking the position and performance of a company. The simulation board separates these concepts into two distinct but related flows of activity.

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Owning the results

Learners come away with an enhanced readiness to take initiatives in everyday activities, leading to reductions in costs, inventories, and working capital; and enhanced understanding of how and why their everyday decisions and actions impact other areas of the company.

Learning Objectives

Finance for Everyone teaches financial tools and concepts. Playing all the major roles in an operating company – production, R&D, sales and marketing, management, and finance – participants get first hand experience with:

  • Basic financial statements and their management uses: Income Statement (P&L) and Balance Sheet
  • How market conditions impact business decisions
  • The difference between cash and profit
  • Fixed and variable costs
  • Cost structure and capacity utilization
  • Budgets and cash flow forecasts
  • The impact of inventory build-up
  • The need to control working capital
  • Ratios as metrics for management (ROA, ROI)
  • The specific financial metrics used by your company to gauge performance, and why they are used
  • Effects of strategy changes

Course Outline

Facilitator-led simulation
2.5 hours

Team competition
4-5 hours

Ratio Analysis
0-30 minutes

Analysis of your company’s financial position
0-30 minutes

Facilitator-led simulation

This group experience provides the rules for the simulation, a general introduction to the process of business (financial statements, business terminology, fundamental business dynamics), and sets the framework of needing to manage separately for cash and profit.

Team competition simulation

The competition consists of four business cycles in which teams have full decision-making power and are accountable for the business results.

In each cycle, team-based companies develop and implement a business strategy which incorporates real-world dynamics: production capacity, customers, prices, financing, and more. Each cycle includes the following activities:

  • Competitor and market analysis
  • Setting prices in a competitive market
  • Monitoring cash flow
  • Preparing an Income Statement and Balance Sheet
  • Posting, comparing, and discussion of results

Teams have opportunities to improve their companies with real world business solutions – expansion, quality initiatives, niche marketing, and more.  Finance learning is integrated within the simulation, activity include cash flow forecasting, budgets, and unit cost analysis.

The 12 hour version of the workshop includes more

The extended 12 hour workshop offers even more: an additional 2-3 hours of simulation experience and integrated finance planning and analysis tools including break-even analysis, income statement analysis, discounted cash flow; 30 minutes Introduction to Ratio Analysis, a discussion of common business metrics with the Income/Outcome Triangle for Ratio Analysis; and 30 minutes of The Company Board®, a 3D visual representation of your current corporate financial position.