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Outline
• Fundamental Accounting Platform - "Common Denominator" review of Key Concepts
o Balance Sheet Basics
o Income Statement
o Importance of the Cash Flow Forecast
o Financial Ratio Analysis
• How Sources of Funding impact the Project
o Large Projects
§ Prioritization - Competing for Funding with other Projects
§ How to Present Your Project in the Best Light
§ Total Project Funding
§ Phased Approval of Funds
o Small Project Funding
o Special Budgetary Sources - Funding Approaches to Consider
§ Cost Savings Pools
§ Brokered Work
§ Shared Funding
§ Multiple Funding Years
• Estimating Considerations - Confidence Levels of Estimates:
o Getting Started - Budget Placeholders
o Business Case
o Option Chosen - Requirements Defined
o Fixed Definitive
• Balanced Scorecard Considerations (BSC) related to Projects
o What is the Balanced Scorecard?
o Viewing the organization from four perspectives
§ Learning and Growth Perspective
§ Business Process Perspective
§ Customer Perspective
§ Financial Perspective
o Is your project aligned with the BSC?
o Developing Metrics - Current and Future States
o Collect Data and Analyze it relative to each of the four perspectives
• Payback Method
o How to Calculate
o Pros and Cons - How accurate is this measure?
• Understanding Return on Investment
o Understanding how to Calculate
o What will this measure tell you? ... and not tell you?
• Value Drivers - Improving Shareholder Value
o Five Essential Ways a Project can Increase a Company's Value
o A Framework for Project Analysis
o Setting Cash Flow Objectives as "Business Drivers"
• Performing Present Value Calculations
o Importance of the Time Value of Money
o Internal Rate of Return (IRR)
o Hurdle Rates and Factoring in Risk
o Net Present Value (NPV)
• Cost Benefit Analysis
o Benefits
§ Revenue Growth
§ Process Improvement
§ Expense Savings
§ Hard vs. Soft Benefits
o Project Costs
o Ongoing Costs
o Total Cost of Ownership
o Checkpoints and Review - the Iterative Process
• Benefits Realization
o What to prepare for once the project is complete
o Feedback and Control - Determining Project Results
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Benefits and Learning Outcomes ▼
- Analyze Balanced Scorecard concepts
- Navigate operating plans, budgeting process and project prioritization
- Bridge the annual plan to the strategic plan and understand how operating budgets differ from project budgets
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