Budgeting From A to Z: The Nuts and Bolts of Budgeting

• Chapter 0 - Overview
  • Learning Objectives
  • Specific Objectives
  • The High Road™ Manager
  • Workshop Roles
  • Introduction—Own Up to the War
    • The Top Seventeen Budget Problems
    • The Endless War
• Chapter 1 - The Whys and Wherefores of Budgeting
  • Learning Objectives
  • Summary—What Is Budgeting?
  • Who Won and Who Lost?
  • Increase Your Budget IQ
    • What Budgeting Is and Is Not
    • Your Firm’s Potential
    • Why Your Organization Needs to Budget
    • The High Road™ Budget
    • The Minimum Requirements for an Effective Budget System
  • Three Budgets
    • The Integrated Triad that Fosters Greater Success
    • Requirement for Accountable Stewardship
    • In Essence
  • Capital Budget
    • The Second Budget in the Triad
    • A Capital Budget Prioritization Worksheet
    • In Essence
  • Balance Sheet Budget
    • The Third Budget in the Triad
    • In Essence
  • Cash Flow Forecast
    • Adequacy of Cash
    • In Essence
  • Complexity Rule
    • The Budget Complexity Rule
    • In Essence
  • Pitfalls
  • In the End
• Chapter 2 - Case Studies for Learning How to Budget Properly
• Learning Objectives
• Summary—We Learn by Doing the Work!
• Case Study 1 – Start with Your Own Organization’s Process
  • What Is Required
  • Final Step
• Case Study 2 – Havok’s Budget Cuts
  • The Situation
  • What Is Required
• Case Study 3 – Revising the Budget
  • The Situation
  • The Problem
  • What Is Required
• Case Study 4 – Budgeting Eetum Up’s Way
  • The Situation
  • The New Budget
  • What Is Required
• Case Study 5 – The CEO’s Confusion
  • The Situation
  • What Is Required
• Case Study 6 – Forecasting Cash Flows
  • The Situation
  • Cash Management
  • What Is Required
• Case Study 7 – Selecting Raelco’s Performance Metrics
  • Metrics that Measure Goal Execution
  • What Is Required
• Case Study 8 – Using 80/20 for Raelco’s Profitability Analysis
  • The Situation
  • What Is Required
• Case Study 9 – Raelco’s Variance Report
  • Scheduled Shipments for the Next 90 Days
  • Net Bookings
  • Average Resale per Line Item
  • Book-to-Bill
  • Margins, Gross and Net
  • Overheads
  • PBIT
  • Capital Employed
  • Cost of Sales Variance
  • What Is Required
• Case Study 10 –Selecting KPIs for Raelco’s Budget
  • The Situation
  • What Is Required
• Case Study 11 – Building a Budget from Scratch
  • The Situation – The Hot Dog Stand
  • Stage 1
  • Stage 2
  • Stage 3
  • Stage 4
  • Stage 5: Part A
  • Stage 5: Part B
• In the End
• Chapter 3 - Budgeting System and Mechanics
• Learning Objectives
• Summary—Is Your House Built on Sand?
• Four Critical Elements of Budgeting
• Key Steps in the Formalized Budgeting and Planning Process
• Single-Focus Budgets
  • Use Micro-Budgets
  • Micro-Budgets for Grants
  • In Essence
• Allocations
  • Never Do Allocations!
  • In Essence
• Assumptions
  • The Need for Assumptions Agreement
  • Common Assumptions Used in the Operating Budget
  • In Essence
• Forms
  • Use Standardized Forms and Screens
  • How Standardized Forms and Screens Work
  • In Essence
• Key Variables
  • Budgeting Important Variables
  • In Essence
• Line Item Costing
  • Pitfall of Doing Line Item Costing
  • Solution to Your Addiction for Line Item Costing
  • In Essence
• Roles
  • Manager’s Basic Role in the Budget Process
  • In Essence
• Top Down vs Bottom Up
  • Three Methods for Development
  • In Essence
• In the End 3-48
• Chapter 4 - The Whys and Wherefores of Planning
• Learning Objectives
• Summary—Budgeting Starts With a Dream
• Increase Your Planning IQ
  • Option A
  • Purpose of Planning
  • Contents of an Effective Planning Process
  • Payoffs from a Well-Structured Planning Process
  • Steps to Building a Planning Process
  • Ron Rael’s Integrated Planning Cycle© for High Road Organizations
• Planning Holistically
  • Planning for Your Success
  • Micro and Macro Planning Tool
  • How to Make Planning Easier
  • In Essence
• Priority Setting
  • Shifting Priorities
  • How to Deal with Quickly Shifting Priorities
  • In Essence
• Mission and Vision Statements
  • Not the Alamo…The Dream!
  • Important to Make the Connection
  • In Essence
• Business Model
  • Your Basic Model for Cash Generation
  • In Essence
• Strategy
  • Strategy Is a Theory That Must Be Measured
  • Success through Action
  • Find Metrics that Measure the Primary Strategy
  • Strategy – The Source of All Business Risks
  • In Essence
• Strategy Limits
  • Three Approaches to Your Marketplace
  • In Essence
• Decision-Making
  • The Budget Measures Outcomes of Decisions Made
  • In Essence
• Resources
  • It Is Not the Money, Dude!
  • In Essence
• Bottom-Line Goal
  • Relationship between the Budget and the Bottom-Line Goal
  • CFO’s Role in Making the Bottom-Line Commitment
  • In Essence
• Goals and Priorities
  • Budget Goals and Priorities
  • Ingredients for a Continuously Improving Planning Process
  • In Essence
• Action Plan Priorities
  • Good Budgets Require Formal Action Plans
  • Focus Is on Action and Execution
  • In Essence
• In the End
• Chapter 5 - The Starting Budgeting Pitfall – Revenues
• Learning Objectives
• Summary—The Engine That Drives the Train!
• Operating Budget
  • How the Operating Budget Is Developed
  • Developing the Budget Step-by-Step
• How Operating Budget Revenues Are Determined
  • The Impossible Task?
  • Revenues Forecast Ingredients
  • Budgeting Sales-Related Costs
• Governmental Budgeting
  • Budgeting in Governmental Organizations
  • In Essence
• Grant Budgeting
  • Grants Require Quality Budgets
  • The Grant’s Budget
  • In Essence
• Service Organization Budget
  • Budgeting for a Service Activity or Company
  • Suggestions for Realistic Budgeting in the Service Environment
  • In Essence
• In the End
• Chapter 6 - The Second Budgeting Pitfall – Costs
• Learning Objectives
• Summary—It’s Not the Costs, Baby!
• Revenue or Profit Centers
• Cost Centers
• Determining the Expenses in Your Operating Budget
• Actual Methods Used for Estimating Expenses
• Charge Backs of Operating Expenses
• Risks
  • Facing Risk and Its Impact on Your Budget
  • Operating Costs and Risks Undertaken
  • In Essence
• Costs
  • Costs Are Very Important in Planning
  • How to Control Costs in Your Budget
  • In Essence
• Cost Analysis
  • Performing Budget Cost Analysis
  • How to Perform a Proper Cost Analysis
  • In Essence
• Depreciation Expense
  • An Important Expense in Everyone’s Budget
  • In Essence
• Overhead
  • Why Overhead Grows Unchecked
  • The Overhead Conversion Solution
  • One Responsible Employee Solution
  • In Essence
• Overhead Rate
  • Usage of an Overhead Rate
  • How to Calculate an Overhead Rate
  • In Essence
• Payroll Load Factor
  • Usage of a Payroll Load Factor
  • How to Calculate a Payroll Load Factor
  • In Essence
• Rule of 80/20
• Rule of 80/20 Makes Budgeting Better
• How to Apply the 80/20 Rule in Budgeting
• In Essence
  • Accrual Confusion
  • Accruals and Budget Reporting Problems
  • In Essence
• Incremental Budget
  • The Incremental Budget Method
  • In Essence
• In the End
• Chapter 7 - The Third Budgeting Pitfall – Environment
• Learning Objectives
• Summary—The Clues of a Flawed Budget Are in the Story
• Culture
  • Culture – A Critical Budget Component
  • The Budget Story You Tell
  • Ingredients of a Culture
  • In Essence
• Communications
  • Budgets and Communication Systems
  • The Budget as a Communication Tool
  • In Essence
• Focus
  • Focus and Execution – the Hallmarks of Success
  • How Organizations Focus Strategically for the Long-Term
  • In Essence
• Performance
  • The Budget Should Drive Performance
  • Tools That Measure Performance
  • In Essence
• Power
  • With Power Comes Influence
  • In Essence
• Rewards and Recognition
  • Use Rewards and Recognition to Drive Performance
  • Downside of Rewards
  • In Essence
• Bonuses and Incentives
  • Incentives for Budget Performance and Goal Achievement
  • Cultural Implications of Incentives
  • Tactics for Ensuring Incentives Drive Higher Performance
  • In Essence
• In the End
• Chapter 8 - The Fourth Budgeting Pitfall – Mechanism for Change
• Learning Objectives
• Summary—Change Happens! It’s What You Do With It That Matters
• Budget Cuts
  • Avoid Peanut Butter Budget Cuts
  • Tactics to Reduce Costs
  • In Essence
• Budget Revisions
  • Why Revise?
  • Changing for the Right Reasons
  • The Alternative to Revising Your Budget
  • In Essence
• Continuous Improvement
  • Continuous Improvement in Budgeting
  • How to Add Continuous Improvement to the Budget
  • In Essence
• Zero-Based Budgets
  • Zero-Based Budgeting Method: the Anti-Incremental Method
  • In Essence
• In the End
• Chapter 9 - The Fifth Budgeting Pitfall – Reporting and Execution
• Learning Objectives
• Summary—The Step After Completion Makes or Breaks the Budget
• Information
  • Information and the Budget
  • In Essence
• Feedback
  • Budget Monitoring and Performance Feedback
  • Guidelines of Budget Monitoring
  • Key Steps in Monitoring Your Budget
  • In Essence
• Variance Reporting
  • Success Requires Timely Objective Feedback
  • Variance Reports – Your Feedback Loop
  • What Feedback Is and Is Not
  • In Essence
• Key Performance Indicators (KPIs)
  • Measuring the Strategic Plan
  • Criteria of a Key Performance Indicator
  • In Essence
• Performance Metrics
  • Building the Budget around Metrics
  • Budget Coordinator’s Tool
  • How a Performance Measurement Works
  • In Essence
• In the End
• Chapter 10 - The Final Budgeting Pitfalls – Everything Else
• Learning Objectives
• Summary—Don’t Avoid the Hard Stuff!
• The Monkey See, Monkey Do Game!
• Accountability (to the Budget)
  • “My Employees Are Not Being Accountable!”
  • What Accountability Is and Is Not
  • How the Pieces Fit
  • In Essence
• Individual Accountability
  • Building Self-Activation through Empowerment
  • How to Build a Culture of Self-Activated Employees
  • Budget Responsibility Statement Tool
  • In Essence
• OPM Syndrome
  • OPM and Your Budget
  • Symptoms of Your OPM Problem in Your Budget or Resource Allocation Process
  • Solutions to Your OPM Problem
  • In Essence
• Controllability
  • Control – Another Budget War Battle
  • Solutions to Your Controllability Issues
  • In Essence
• Dummy-Proofing
  • Two Reasons to Dummy-Proof Your Budget
  • How to Dummy-Proof
  • In Essence
• Empowerment
  • Empowerment in the Budget Process
  • How the Budget Builds Empowerment
  • In Essence
• Game Playing
  • Why Do Employees Play Games with the Budget?
  • Powerful Ways to End Budget Games
  • In Essence
• Motivation
  • Motivation of Resource Managers
  • In Essence
• Sharing
  • Sharing Is a Sign of a Healthy Organization
  • How to Promote Sharing
  • In Essence
• In The End
• The Budget Is Just the Beginning
• Chapter 11 - Basic Principles and Terminology of Quality Budgets
• Learning Objectives
• Summary—Sound Bites!
• In the End
• Budget Terminology
  • Budget Terminology Used in This Course
• Chapter 12 - Latest Developments
• Appendix A
• For More In-depth Understanding
• Activity: Cut Me Some Slack!

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