Financial Insights for Non-Financial Managers
Being able to communicate in the language of finance is crucial for successful decision-making. This course is designed to demystify finance and provide non-financial operational managers with the confidence and skills to work effectively with colleagues as well as finance and accounting specialists.
You’ll learn to manage growth by understanding sources of revenue and appreciating the relationships between asset investments, working capital management, and funding selection as key drivers to value creation. A variety of learning tools will be employed including small group discussion, case analysis, and worksheet application. By the end of the course, participants will have a significantly enhanced understanding of the concepts, tools, and techniques to make each decision pay off.Dates + Registration
Who Should Attend?
This two-day course is designed for mid-career managers with revenue and budget responsibility for division, operational, or business units who want to give their careers a boost by further developing their financial knowledge and skills.
Following this course, participants will have a greater appreciation of the key value drivers of business and of how these financial drivers interact to drive value-creating growth. The program will enhance your knowledge base, improve your fluency, and increase your confidence in dealing with financial data and engaging with financial professionals. Specifically, you will:
- Learn how to evaluate financial statements and develop KPI’s (key performance indicators) to assess and direct a company, or divisions, performance.
- Appreciate how and why financial managers view investment decision making, funding identification and sourcing, and working capital management as the key integrating aspects to managing for value.
- Understand different methods for assessing the worthiness of potential projects.
- Confidently articulate and apply the principles of value-based management.
- Explore the application of sensitivity and scenario analyses to understand the potential consequences of risk and uncertainly on volumes, revenue, costs, and profitability.
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DAY 1: 8:00 AM ‐ 6:00 PM:
8:00 - 8:30 Registration, Breakfast & Networking
ASSESSING FINANCIAL PERFORMANCE:
Explore fundamental concepts of financial accounting and the role financial data plays in measuring and evaluating performance. Understand how financial data are used to analyze company or division performance and identify key drivers (KPI’s) for value creation. Analyze the contribution of your own unit / division to the organization and scorecards or roadmaps that best support the successful delivery of concise financial data.
- Develop a greater understanding of corporate financial statements and their constituent elements.
- Undertake a case analysis that involves calculating key financial ratios in order to evaluate the liquidity, profitability, efficiency, and financial structure of an enterprise.
- Learn how various elements of performance (value drivers), integrate into overarching value metrics.
- Translate a company-wide analysis into implications for units and divisions and establish consistent criteria for examining division performance and product lines.
MANAGING WORKING CAPITAL:
Understand the cash flow cycle and appreciate how potentially value-enhancing decisions related to inventories, receivables, and payables impact cash needs. Discuss the pros and cons of adjustments to current asset and liability choices for business performance and for funding.
- Develop a cash flow budget for a case company and undertake sensitivity analyses to explore the consequences for cash needs, growth and consequent profitability.
- Explore the implications of insights gained for their own units and divisions.
- Conduct cost and contribution margin analysis and exposure to volume/price risks from a profitability and cash consequence perspective.
- Extend the analyses beyond working capital to introduce the concept of “sustainable growth”.
5:00 PM: Cocktail and Networking Event
DAY 2: 8:00 AM ‐ 5:00 PM:
8:00 - 8:30 Breakfast & Networking
Investigate decision-making and selection of investment projects, and different ways to finance them. Review key concepts such as time value of money and discount rate as the essential building blocks of net present value. Gain practical exposure to investment project appraisal from a cash flow projection perspective and a review of essential rates of return, to compensate investors for their risk exposure.
- Estimate the operating and capital cash flow consequences of an investment opportunity, including potential cannibalization, sharing of production facilities, and inflation.
- Analyze how risk is factored into investment appraisal.
- Understand the various investment evaluation criteria commonly employed and the pros and cons of each.
- Apply discounted cash analysis to evaluate a project and undertake a sensitivity analysis as part of the decision process.
INTRODUCING CAPITAL STRUCTURE:
The concept of funding sources and the strategic choices between debt and equity will be introduced and discussed and how a company decides on an appropriate capital structure. How do these choice impact the “hurdle rates” presented to divisions and units within the company.
- Explore how capital structure choices can impact the company’s overall and divisional cost of capital.
- Relate cost of capital and operating performance to value through the Economic Value Added (EVATM) MVA framework.
- Understand Market Value Added (MVA), the result of outsiders’ perception of how successful operating managers and executives are in applying financial principles.
The course will apply principles to your company/unit budget or profit and loss statement (P/L). Bring your specific company or unit budget or profit and loss statement (P/L) for review and application. You should also study the glossary of definitions and prerequisite materials provided prior to the course attendance.
Suggested Reading: The Great Game of Business by Jack Stack
Dr. Michael J. Page - Professor of Finance and Management, Bentley University, Professor Extraordinaire, Stellenbosch Business School, South Africa Honorary Professor, University of Cape Town (UCT) at the Graduate School of Business (GSB)
Michael Page is Professor of Finance and Management and a past Provost and Vice President for Academic Affairs at Bentley University in Massachusetts. He also holds an Extraordinary Professorship at Stellenbosch University Business School, South Africa.
Before joining Bentley, he served as the Dean of Post-Experience Programs at Erasmus University’s Rotterdam School of Management and as the Executive Director of the Rotterdam School of Management BV, The Netherlands. Page joined Erasmus after sixteen years at the Graduate School of Business of the University of Cape Town, South Africa as a professor in Finance.
Page currently serves on the boards of the European Foundation for Management Development (EFMD) and South Africa Partners. He has just completed a six year term on the board of the Association to Advance Collegiate Schools of Business (AACSB, International) during which time he also served for six years on the AACSB’s Committee for Issues in Management Education (CIME). He serves on advisory boards for Nagoya University of Commerce and Business (Japan), Cape Town University’s Graduate School of Business (South Africa), École Nationale des Ponts et Chaussées (ENPC) School of Management, Paris (France), Kedge Business School, Bordeaux and Marseille (France), the Russian Presidential Academy of National Economy and Public Administration, Moscow (Russia), and the Erasmus Centre for Women and Organisations, RSM Erasmus University (The Netherlands). He has also previously served on the international advisory board of Chulalongkorn University’s Sasin Graduate Institute of Business Administration (Thailand).
Page's thirty years as business school academic includes having held professorships in finance, executive education, and management, and senior academic administrative positions on three continents. He has served for eight years as statutory director of private companies including as general (managing) director, three years as a senior consultant and fund management advisor, and been senior partner in a small consulting business that advised organizations on maximizing their human and social capital.