Learning Objectives

The Overall Objective:

is to increase knowledge and confidence, by developing finance skills, contributing towards improving gross margins, EBITDA & reducing debtor days.

Training Objectives: by the end of this training the delegates will be able to…

  • Consider the profitability of each customer and how to manage the financial return as part of the overall relationship
  • Describe the differences between mark up and margins, and how additional volume can affect profitability
  • Select and apply appropriate financial measures to financial statements to assess profitability and viability
  • Be better equipped to analyse and manage variance to budget on both sales and GP

Day One

Sessions Outline Content Your People Will Be Able To
Pre-Training
- Individual briefing
- Option: pre training quiz/customer evaluation exercise
- Consider their individual learning objectives
- Assess their own current knowledge level
Introduction &
Learning Objectives
- Outline Agenda
- Overall Objectives
- Personal Learning Objectives
- Describe their individual learning objectives
Finance & Strategy
- Team Question: how do you grow an organisation?
- The Balanced Scorecard
- Define how finance fits with strategy and vision
- Describe where KPIs come from, and which are most relevant to their role
- Describe the strategy and Vision, and how this connects with their responsibilities

The Language of Finance

- Income Statements
- Cakes and slices
- Balance Sheets
- 5 Levers Model
- Relevant customer/supplier example (suggest one well known to all)
- Describe the purpose of the main financial statements
- Define the components of each
- Understand financial terminology – especially gross margins, operating margins & EBITDA
- Describe a Sales/Account Manager’s contribution to the overall financial performance of the business

Financial Key Performance Indicators - Profitability

- Analysis of Company A
- Profitability Ratios
- Profitability in different relevant segments – Customer Case studies
– Construction/Infrastructure for NAMs/SLOs, Housebuilders for RAMs*
- Define the relevant ratios
- Demonstrate how to calculate measure of profitability from financial statements
- Discussion and analysis of industry

The Nature of Revenue & Profit

- Gross & Operating Margins
- Mark up vs. Margin – including tailored examples*
- The effect of selling at a lower price
- Volume and pricing
- Product Mix – the effect on overall margins
- Product Mix Exercise – across the range
- Pricing Strategies
- Describe the difference between mark up and margin
- Calculate gross margins and consider the effect on EBITDA
- Calculate the effect of selling at a lower price
- Calculate the increased volume required to cover lower prices
- Calculate the effect of differing product mixes

Managing Variances & your performance

- Forecasting, Estimating, Guesswork
- Variance Analysis – actual vs. budget, sales & GP
- Application to product/customer examples*
- Conduct a variance analysis on an example customer
- Variance analysis points on sales, margin, product mix

Learning Review

- Action Planning
- Start. Stop, Continue
- Link to development plans/objectives
- Apply learning to sales situations
- Agree actions points for implementation & coaching

Day Two

Sessions Outline Content Your People Will Be Able To
Progress Review
- Revisit of key themes from Day 1
- Phil’s Quick Quiz – revisit Day 1 key points
- Track progress
- Ask questions, connect to new material
Preparing Yourself For Customer Meetings
- Negotiation basics = exercise
- Your priorities
- Their priorities
- Negotiation Essentials: WIN, BATNA, Tradeables, outcomes
- What can you prepare in advance?
- Negotiation Practice
- Describe the essential skills of negotiation with customers
- Define the areas of negoation under their control
- Prepare for meetings with suppliers in February
Customer Meeting Skills
- How should a good meeting run?
- Using IMPACT for Impact
- Introducing the meeting – using the Agenda
- Questioning skills
- Listening skills
- Positioning your proposition
- Define what a good meeting looks & sounds like
- Describe how to apply and develop skills to improve a meeting’s flow
- Provide a template for coaching & skills development Position the company proposition effectively

Financial Key Performance Indicators - Liquidity

- Further analysis of Company A
- Liquidity Ratios – especially debtor days
- Relationship between Debtor & Creditor Days
- Cash flow forecast – application of variances
- Relevant customer examples*
- Define the importance of working capital
- Demonstrate calculation of liquidity ratios
- Describe how to reduce debtor days
- Demonstrate the impact of debtor days on working capital
- Demonstrate actions to be taken to manage cash flow & components of working capital

Financial Key Performance Indicators - Profitability

- Analysis of Company A
- Profitability Ratios
- Profitability in different relevant segments – Customer Case studies
– Construction/Infrastructure for NAMs/SLOs, Housebuilders for RAMs*
- Define the relevant ratios
- Demonstrate how to calculate measure of profitability from financial statements
- Discussion and analysis of industry
Customer Meeting Skills Practice
- In 3s
- Practice supplier meetings
- Give & receive feedback
- Demonstrate successful supplier negotiations
Learning Review
- Action Planning
- Start. Stop, Continue
- Link to development plans/objectives
- Key messages from Day 1
- Apply learning to sales situations
- Agree actions points for implementation & coaching
- Apply lessons so far

Product Mix – we will work with you to use appropriate internal reports and examples. Include the rate card?

Between sessions:

We can suggest activities to reinforce learning, based on your KPIS and their Key Learning Points

Coaching

The approach to the training would be to potentially intersperse the two days of training with coaching.
We feel this is the best way to truly embed knowledge, and maximises the impact of the training. WE are happy to discuss how you can build this in.

Evaluation of Learning

We can provide three multiple choice assessments, one as a pre-training questionnaire prior to the course to ascertain pre-existing knowledge, followed by one during day one, and one during day two.
OR
To record the individuals’ average gross margin and/or average debtor days, or A N Other key performance indicator.