Budget & Cost Control in turbulent operating environment

Course Content & Objectives

Many companies have been growing rapidly and strongly in the past few years thanks for the relative stable economic situation in China. They have been trying to new business models, even with big cost increases in human and other resources, resulting in good profits. However, the sudden outbreak of coronavirus made most of companies unprepared to prevent. How can enterprises tide over this difficulty? Appropriate budget and cost control methods will help them to survive, and grasp opportunities and development when other people “horrified”. 

这几年整个的经济形势还是比较稳定的，很多的企业也在大的经济环境下快速而强劲的增长，即使在人力、资源成本大幅增加的情况，也在不断寻求新的商业模型，给自身带来利润。但是，突如其来的新冠疫情使很多企业措不及防。在这种特殊情况下，如何能够使企业渡过难关，适时的预算与成本管控，能够让企业首先“生存”下去，并且还能在“别人恐惧”的时候，抓住时机，发展壮大自身。

Course Outline

Part 1. Purpose of budgeting as telescope, microscope 
1. Review budget process during an outbreak of coronavirus
► General methods and special methods
• Strategic targets
• Annual targets
• How to set targets at special time?
• Who involves in the budget process?
o Does financial people make the budget?
o Who will lead? Who will involve in the process and who will coordinate?
• Where does the budget start from?
• What eles is lacking?

2. What are the major issues during the turbulent periods?
► Dynamic cash flow estimation internally and externally
• Self safe line
• Safe line for supply chain
• Financing ability and policies
• Control of merger and acquisition opportunties
► Dynamic estimation of sales market
► Dynamic estimation of supplying market
► Dynamic estimation of broad market

Part 2: Budget integration and execution control 
1. Digitalized financial system 
► Integration of value flow by budgeting
► Setup digital system 
► Collection of business information

2. Analysis of business variance 
► Real business monitoring
► Variance reporting
► Business analysis and decision making 

Part 3: Control of cost from operating activities
1. Framework of a company’s cost and expenses
► Cost map in different industries
► Find cost strategies
o Must
o Not necessary
► Standards of cost and expenses 
o Setup standards and ranges
- In major value chains
- R&D and other investment 
- Cost in functional departments
- Balance between efficiency and effectiveness

2. Methods to control and monitor cost and expenses 
► Tools to analysis variance 
o Cost waterfall, etc
o PPC, MCP, VAM, OTE
► Measurements 
o Don’t regards everything as "uncontrollable" 

部分1：预算的”望远镜、显微镜与放大镜”作用
1. 疫情期间重新审视企业预算过程
► 一般性做法与特定时期做法
• 战略目标
• 年度目标
• 特殊时期的目标如何定？
• 预算过程谁参与
o 公司预算是财务做出来的吗？
o 谁来主导？谁来参与？如何协调？
• 预算应当从何开始
• 还缺乏什么？

2. 内外部环境变动极大的环境背景下，预算重点
► 内外部的现金流动态估算
• 自身的安全线
• 供应链环节的安全线
• 融资能力和政策
• 购并机会的把控
► 销售市场的动态估算
► 供应市场的动态估算
► 广义市场的动态估算

部分2： 预算汇总与执行控制
1. 数字化财务系统的实施
► 预算整合价值流
► 数字化系统搭建
► 业务数据的收集

2. 业务差异的分析
► 实际业务监控
► 报告差异
► 业务分析与决策

部分3 ：运营活动的成本费用把控
1. 企业成本费用的构架
► 不同行业的成本地图
► 发现成本策略
o 必须的
o 不必须的
► 找到成本费用的标准
o 制定标准及其范围
- 主价值链上的
- 投资、研发成本费用的管控
- 职能部门费用管理
- 效率与效能的平衡

2. 成本费用的管控手段
► 差异的分析工具
o 成本瀑布图等
o PPC, MCP, VAM, OTE
► 分析与改进措施
o 不要什么都推到“外界原因！”

Facilitator

Grace Zhao 赵立新 

More than 20 years of working and training experience in large state-owned enterprises and top 500 foreign companies. Financial training and consulting for middle and high-level managers, and is familiar with the management of production, service, construction and R & D.

Certified of FRM Financial Risk Manager, CFA Chartered Financial Analyst, CMA Certified Management Accountant, ACCA The Association of Chartered Certified Accountants

Peking University, MBA

Macquarie University, Australia, Master of Applied Finance

20多年企业实践和培训经验，先后就职于大型国企，500强外企，负责中高层管理者的财务培训和咨询，熟悉生产、服务、建造及研发的经营管控。

获得四大国际证书： FRM 金融风险管理师，CFA 注册特许金融分析师，CMA 注册管理会计师，ACCA 特许公认会计师

北京大学光华管理学院，工商管理硕士

澳大利亚麦考瑞大学，应用金融硕士

Registration

Please Scan the following QR code to register or send e-mail to sc-hr@ccifc.org