Course Introduction
Every firm’s Annual Operating Budget is a strategic gauge for measuring performances and progress, as well as weighing deviations. It is a link between strategic expectations and realities.
As a business Owner or Manager, your ultimate business goal is productivity of the staff and profitability of the business, and the aim of annual operating budget is to regulate your activities and drives your focus towards achieving this goal through daily, weekly and monthly budget versus actual analysis of parameters influencing productivity and profitability.
This topic is designed to support participants’ roles to this regard. Whether you have little to no experience in handling financial data, we will help you build your knowledge on this basic financial tool and equipped you with better understanding of the role of a business Owner or Manager regarding the exploration of how every of your business actions/inactions effect overall long term of the business profitability.
Learning Objectives
At the end of this training, participants will be able to:
- Understand major components of a basic AOB
- Align daily, weekly, and monthly business activities to AOB parameters
- Conduct Variance Analysis on AOB (Budgeted vs. Actual)
- Know how to Collect Data about the Variances.
- Determine Potential Causal Factors of the Variance using Root-Cause-Analysis
- Prioritize the Causes of the Variance.
- Create Solution, Recommendation, and Implementation.
- Create Personal Variance Analysis Template
- Take corrective actions to improve upon detected variations
- Develop strong professional approach to managing Operations
Key Course Contents
- Module 1: Understanding Annual Operating Budget
- Why is AOB important?
- Understanding the Revenue (sales) Component of a typical AOB
- Understanding the Cost of Sales Component
- Understanding the Cost of Labour
- Focusing on the Controllable Costs
- Module 2: Conducting Budget versus Actual Analysis
- Differentiating Budget, Forecast and Target
- Preparing the Actual Financial Statement
- Conducting Variance Analysis on Sales Component
- Analysis on Cost of Sales, Cost of Labour and Controllable Cost Components
- Drawing the Conclusion
- Module 3: Meeting, Managing and Exceeding Customer Expectations
- Instituting Monitoring and Control Remedial Actions
- Reviewing Strategies for Maximizing Sales and Minimizing Food-cost
- Improving Gross and Net Margin (EBITDA)
Target Audience
The Conducting Performance Evaluation Using Variance Analysis Training is designed for every head of departments, Managers and Team Leaders. This training is more beneficial for those managing people in an organization because they will learn about how to evaluate the performances of their team especially regarding their business performances.