6.10 - Budget, Accounting and Financial Management

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6.10 - Budget, Accounting and Financial Management by Mind Map: 6.10 - Budget, Accounting and Financial Management

1. Strategic Plan Development

1.1. TD Department Strategic Plan

1.1.1. Where is the department now?

1.1.2. Where does the department want to go?

1.1.3. How will the department get to where they want to go?

1.1.4. What are the department's strengths and weaknesses?

1.2. Four-Phase Strategic Planning Process

1.2.1. Formulation

1.2.1.1. Identify organizational values.

1.2.1.2. Develop mission statement

1.2.1.2.1. purpose of an organization - reason for existing

1.2.1.2.2. focus employees on a common outcome

1.2.1.2.3. describes types of solutions and strategies

1.2.1.3. Develop a vision

1.2.1.3.1. describes an organization as its members would like it to be

1.2.1.3.2. focuses on organizational strengths and uniqueness

1.2.1.3.3. helps guide, remind, inspire, and control

1.2.1.3.4. vision statement

1.2.1.4. Develop value statements

1.2.1.4.1. The first segment addresses performance value, which introduces the learning department's work and describes how much value the learning department has added or plans to add in performance terms.

1.2.1.4.2. The second segment describes financial or business value. It translates what performance improvement means regarding financial measures or business metrics that the organization's leaders think are the most important.

1.2.1.4.3. The third segment provides context and connects financial or business value to important tasks the learners are doing currently.

1.2.1.4.4. The final section includes the learning function's goal. Goals communicate what TD professionals need to do to help the learning function continue to create value. The goal statement supplies key information about sustainability and speed.

1.2.2. Development

1.2.2.1. Analyze strengths, weaknesses, opportunities, and threats (SWOT)

1.2.2.1.1. internal

1.2.2.1.2. external

1.2.2.2. Establish strategic goals that will take two to three years to attain.

1.2.2.2.1. purpose = broader mission of the organization

1.2.2.2.2. focus the training manager, team and clients on the target

1.2.2.2.3. create commitment and agreement on training department's strategic goals

1.2.2.2.4. S.M.A.R.W.

1.2.2.3. Develop strategies to attain those goals.

1.2.3. Implementation

1.2.3.1. Establish short-term objectives (six months to a year).

1.2.3.1.1. component parts of strategic goals

1.2.3.1.2. specific tasks certain people need to accomplish

1.2.3.1.3. identify key participants, resources, inputs needed to acheive the objective

1.2.3.2. Create action plans to reach those objectives.

1.2.3.2.1. critical to success of strategic plan

1.2.3.2.2. Tailored to goals and objectives

1.2.3.2.3. answer two basic questions

1.2.3.2.4. other questions

1.2.3.3. Allocate resources to work toward those objectives.

1.2.3.4. Motivate employees to reach those objectives.

1.2.4. Evaluation

1.2.4.1. Review strategies.

1.2.4.2. Measure performance.

1.2.4.3. Take corrective action.

1.2.4.4. Important questions

1.2.4.4.1. How will the TD professional know when strategic goals and objectives have been accomplished?

1.2.4.4.2. What type of early warning system can be created to flag impending problems?

1.2.4.4.3. What alternative plans can training managers create if the initial plan fails?

1.2.4.4.4. How can the TD professional avoid punishing people if the plan fails?

1.2.4.4.5. How will people be rewarded if they achieve goals and objectives successfully?

1.2.4.4.6. How will the TD professional monitor the progress of the strategic plan?

1.2.4.4.7. Who will be responsible for checking the strategic plan's implementation periodically?

1.2.4.4.8. Is the feedback or evaluation system comprehensive enough to accomplish future strategic plans successfully?

1.2.4.4.9. Is the feedback or evaluation system such that a TD professional can use it to design and develop future strategic plans?

2. 6.10.2 - Role of the Manager

2.1. creating value statements and defining their relationship to the corporate mission and vision

2.2. determining how much (at least by percentage) of the organization's budget is spent on training

2.3. determining specific training needs rather than using a generic policy that every employee must have a certain amount of hours of training per year

2.4. communicating value to the most senior-level employees of the training manager's organization and client organizations

2.5. applying business acumen, including an understanding of the organization's current market share and profit-loss standing

2.6. the organization's goals and progress toward those goals

2.7. the processes and procedures for providing the organization's services or products

2.8. external and internal forces that affect the company and the industry

2.9. human motivation theories

2.10. behavioral and industrial or organizational psychology

2.11. technology

2.12. accounting and financial concepts

3. Budget Management

3.1. training is a support function vs. revenue-producing function

3.2. Training should be run as a business

3.3. a working plan that guides fiscal decisions

3.4. part of larger accounting system

3.4.1. Budget design and development (forecasting)

3.4.2. Budget execution (expense tracking, monitoring, and management)

3.4.3. Reporting and reconciliation.

3.5. optimally based on business plan - not available revenue or previous spending levels

3.6. present in logical, concise manner

3.7. show how projects and programs link directly to organization's success

3.8. three major steps

3.8.1. prework research

3.8.2. training plan processes

3.8.3. budget management

3.9. Prework Research

3.9.1. historical records

3.9.2. baseline funds

3.9.3. budget accuracy

3.9.4. benchmark data

3.9.5. Post mortems

3.10. Training Plan Processes

3.10.1. continuing existing training programs and services

3.10.2. proposed new programs

3.10.3. makes developing a budget fairly simple

3.10.4. programs not tied to business results are liable to be eliiminated

3.10.5. top-down info gathering

3.10.6. bottom-up info gathering

3.10.7. Components of a Training Plan

3.10.7.1. Organizational elements

3.10.7.1.1. organization's vision, mission, and value statements

3.10.7.1.2. strategic goals

3.10.7.1.3. objectives

3.10.7.1.4. organization's core competencies

3.10.7.2. Training Plan elements

3.10.7.2.1. training program titles

3.10.7.2.2. KSAs

3.10.7.2.3. program objectives

3.10.7.2.4. competencies taught.

3.10.7.3. Training Data needed for estimating program costs

3.10.7.3.1. duration (in days or hours)

3.10.7.3.2. frequency (how many times taught per year)

3.10.7.3.3. number of participants per class

3.10.7.3.4. instructor costs

3.10.7.3.5. travel expenses (for instructor and participants)

3.10.7.3.6. facility costs (room rental, equipment rental)

3.10.7.3.7. technology costs (rental, purchase, maintenance)

3.10.7.3.8. materials costs (workbooks, handouts)

3.10.7.3.9. equipment costs (purchase or rental).

3.11. Budget management

3.11.1. track expenses

3.11.2. document deviations

3.11.3. perform periodic budget reviews

3.11.4. budget expenses

3.11.4.1. TD employee salaries, overtime pay, raises, and bonuses

3.11.4.2. costs for turnover, hiring and training new staff, and temporary employees hired for special projects

3.11.4.3. tools and equipment, including office supplies and software

3.11.4.4. new and replacement equipment purchase or rental including maintenance or service contracts

3.11.4.5. training for trainers, including full-time new-hire staff and any supplier trainers (this expense should specify the number of train-the-trainer sessions expected and the number of topics)

3.11.4.6. travel for in-house staff, SMEs, consultants, or outside facilitators

3.11.4.7. facilities rental.

4. Accounting Terminology

4.1. Assets

4.2. Liabilities

4.3. Equity

4.4. Balance Sheet

4.5. income statements

4.6. chart of accounts

4.7. general ledger

4.8. cost-benefit analysis

4.9. expenses

4.10. incurred expenses

4.11. operating expenses

4.12. revenue

4.13. financial statements

5. Return to 6.0 Managing Learning Programs