Focus on effective planning
The Finance for Managers program runs through a simulated year. Teams are looking at short-term results and long-term goals. This involves forecasting and constant decision-making on such issues as pricing, capacity, borrowing, R&D, cost structure, and cash flow.
Tracking company performance
Learning begins with the Income/Outcome game board and the modeling of simple financial statements for use in tracking the position and performance of a company.
Gaining practical experience
Learners gain practical experience in the use of a range of financial planning and analysis tools including cash flow forecasting, budgeting, and ratio analysis.
Learning Objectives
This workshop presents key financial tools and concepts:
- Management uses of basic financial statements
- Why market conditions dominate business decisions
- The need to manage separately for cash and profit
- Fixed and variable costs
- The value of budgets and cash flow forecasts
- The impact of inventory build-up
- The need to control working capital
- Break-even analysis
- Unit cost analysis
- Income Statement analysis
- ROA, ROI, and other metrics for management
- Financial metrics used by your company
Course Outline
Facilitator-led simulation
2 hours
Team competition
7.5 hours
Ratio analysis
2 hours
Analysis of your company’s actual financial position
1 hour
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
Team competition consisting of six business cycles in which teams have full decision-making power and are accountable for the 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:
- Examining market drivers: supply and demand, niche marketing, quality
- Competitor awareness, setting prices in a competitive market
- Ongoing strategic analysis, updating the strategic plan in response to changes in the industry and in the marketplace
- Budget and cash flow exercises
- Monitoring cash flow
- Maintaining the ‘books’ of the operating company (Income Statement and Balance Sheet)
- Performance measurement and analysis
- Posting, comparing, and discussion of results
Other activities include competitor analysis, Break-Even analysis, Income Statement analysis and cost-benefit analysis.
Ratio analysis
This module involves discussion of common business metrics with the Income/Outcome Triangle for Ratio Analysis
Application to your company’s financial position
The Company Board® is a 3D visual representation of your current corporate financial position. This module transitions the learning from the classroom to the real world. The tie-back and discussion relate the simulation experience to your company’s concerns, measures, and goals. Can include additional visualization exercise and discussion of real world competitors.