Financial Re-Engineering to Improve Cost Efficiency

Duration: 3 Days

Businesses have a tendency to fluctuate between efficiency and inefficiency depending on the prevailing economic situation and other competitive pressures. It is all too easy to acquire inefficient operational disciplines and accumulate ‘fat’ during an economic upturn when management attention and focus is diverted to growth opportunities and/or easily acquired profits. However, the inevitable course of the downward economic cycle quickly exposes decisions that, with hindsight, do not have long term operational benefits. This often leads to drastic measures and severe financial repercussions.

This course is designed to explain how managers can spot the onset of financial inefficiency and address it before it becomes a chronic issue, and learn how to keep on top of it.
 

How can I attend my course?


Course Outline

Target Audience

This course is aimed at Executives, Operational Senior Managers, Managers and Supervisors involved in managing cost efficiency and budgeting within organisations.

Practical Focus

Each topic is reinforced with best practice examples and case studies. The focus is on identifying inefficiencies across the entire organisation with a focus on production and operational functions.

A practical case study based on your specific business environment will underpin each topic. This case study will also form the basis of the exercises and breakout sessions. 

Course Content

How Businesses Aquire Inefficiency
  • Understanding the business and economic cycles and how shareholder value is created and squandered
  • How strategy and targets can often lead management astray
  • The negative influences on the decision making process
  • How inefficiency creeps upon the business
  • Is there such a thing as financial stability and predictable growth in these turbulent times?
How Inefficiency Manifests Itself 
  • The tell-tales of signs of inefficiency that are often ignored by management
  • The battle between short-term quick-wins and long-term sustainable growth
  • Scenarios when growth can be harmful
  • Cultural and sociological aspects that contribute to inefficiency
Using Financial Reports 
  • Key information to look out for
  • Stress-testing the financial statements
  • What the reports reveal and what they don’t
Overview of Efficiency Diagnoses Techniques 
  • Cost efficiency ratios
  • Production efficiency ratios
  • Labour efficiency ratios
  • Materials efficiency ratios
  • Process efficiency ratios
  • Use of zero based approach to challenge the status quo
  • Use of benchmarks and trends
  • Insolvency and bankruptcy signs
  • Limitations of ratios
Working Capital Management and Capital Structure
  • Funding the business: long term and short term
  • Equity versus debt
  • Short term solvency issues
  • The cash-conversion cycle
Procurement and Purchasing
  • Revisiting procurement contracts
  • Seeking value for money deals
  • Re-examining expenditure trends
Awareness and Discipline 
  • Instilling financial discipline in the management structure
  • Cascading the correct decisions making mentality and instilling financial awareness
  • Building financial resilience to avoid or mitigate inefficiency
How to Maintain Financial Discipline 
  • Is constant financial stability possible?
  • Riding the economic cycle and learning to use it to re-evaluate operational structure
  • Being vigilant to the onset of inefficiency
  • Learning from errors and setbacks

My Course Notes

You will receive a full set of course notes and all supporting materials for your course. Hard Copy Delivered to your premises or Downloaded to a chosen device.
 

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To book this course please call +44 (0) 1444 410296 or email at Info@kplknowledge.co.uk

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