PROGRAM DETAILS

Introduction

This highly participative 5-day programme covers the principles, techniques and skills involved in the forecasting, planning and management of cash flow in any business, blending a clear theoretical framework with extensive use of real-life examples and case studies.

Improvements in cash flow management have become a critical element contributing to the achievement of acceptable levels of financial performance. A key challenge in achieving these performance improvements results from the fact that actual levels of working capital and delivery of cash flow are not under the direct control of senior management, and are effectively determined by the day-to-day actions of large numbers of staff.

Learning Objectives

•  Acquire an understanding of the fundamentals of effective forecasting, planning and management of cash flow, in both the short and long term, and in the two vital areas of capital investment and working capital
• Develop practical experience of how to manage cash flow and optimise working capital, to facilitate such delivery in real life business situations
• Increase personal financial skill levels

 Target Audience

•  Business Executives, Strategic and Business Development Planners and Project Managers who wish to refresh their understanding and enhance their Skills in managing and improving cash flow and working capital performance
• Any Staff (Technical/Engineering, Commercial/Marketing, Operational, Financial, etc) whose work impacts directly on cash flow and/or working capital, who need to develop their expertise in these areas to support their current work or for their career development

 Training Methodology

 The programme is strongly participative, with a learning-by-doing style that makes extensive use of examples and exercises/short case studies as well as open discussions. New material will be introduced each day to build on the learning in the previous sessions.

 Program Content

 Day 1 – Cash Flow: Framework & Objectives

•  Financial Skills: Importance, Framework and Programme Focus
• The Three Cycles of Cash Flow: Forecasting, Planning & Management
• A Performance Management Model
• Accounting Basics
• The Key Financial Statements
• Accounting Exercises
• Cash Flow Statements
• Cash Flow versus Profit
• Working Capital and its impact on Cash Flow
• Cash Flow Exercises

Day 2 – Measuring & Improving Performance

• The Standard Financial Summary (SFS)
• Cash Flow Case Study
• Management Information/Reporting of Working Capital Movements
• Measuring Performance: Ratios/Key Performance Indicators (KPIs)
• Ratio/KPI Exercises
• Benchmarking of Financial Performance
• Benchmarking of Operational Performance
• Internal Benchmarking

Day 3 – Operational Cash Management 

• The Economic Value Model
• The Cost of Capital
• The Time Value of Money and Discounted Cash Flow (DCF)
• DCF Exercises
• Standard Evaluation Methodology
• Upstream DCF Mini Case Study
• The 4 Key Investment Indicators
• Defining the Right Base Case
• Downstream DCF Mini Case Study

Day 4 – Strategic Cash Management 

• The Alternative Case and Incremental Economics
• Working Capital Investment Mini Case Study
• Risk Management
• Sensitivity Analysis
• Value-Based Cost Management
• Where Does the Net Present Value (NPV) come from?
• The Sources of Value
• Learning from Experience/Project Value Delivery (PVD)

Day 5: Optimisation of Working Capital

• Optimisation not Minimisation
• Gross Working Capital Concept
• Key Issues and KPIs
• The Cost of Working Capital
• The Working Capital Toolkit
• Working Capital Toolkit Exercises
• Credit Risk Management
• Settlement Options
• Engaging the Organisation