Training Course: Executive Finance and Accounting: ROCE, NPV and Decisions

Executive finance and accounting is the working knowledge managers need to read financial statements, measure returns and use financial evidence when deciding on investments, budgets and strategy. This five-day intensive course is for managers and senior specialists outside finance, and its final deliverable is a financial decision brief for a case investment, combining statement analysis, an NPV model and a recommendation.

Introduction

The course rests on three methods. Return on capital employed (ROCE) measures operating profit against the capital a business uses. Net present value (NPV) discounts expected cash flows to show whether an investment adds value. The Balanced Scorecard links financial measures with customer, internal process and learning measures. The level is intermediate to advanced for managers, condensed into five days of core practice rather than a longer study of finance and accounting. Teaching uses case studies from manufacturing and retail and a financial model built step by step.

Course Objectives

• Distinguish the roles of chief financial officer, treasurer and controller and define what managers need from each
• Interpret how the three financial statements connect and calculate ROI and ROCE for a business unit
• Compare projected with actual results and justify buy, sell or hold decisions on investments
• Apply NPV and a structured financial model to evaluate a proposed investment
• Apply the Balanced Scorecard to link financial measures with customer, process and learning measures
• Select negotiation and leadership approaches that turn financial evidence into agreed action

Target Audience

• Department heads and business unit managers holding budgets, who must decide which investments their unit proposes
• Operations and project managers new to profit responsibility, who must judge whether a plan's numbers are realistic
• Senior specialists preparing for general management, who must interpret financial statements before approving decisions
• Finance team leads moving into management, who must choose how to explain financial targets to non-finance colleagues
• Commercial managers negotiating major contracts, who must assess the financial effect of the terms they agree

Course Outline

Day 1: Finance Roles and Financial Statements

• CFO vs Treasurer vs Controller: Distinct Responsibilities Within the Finance Function
• Finance and Accounting Practice for Managers: How Each Supports Business Decisions
• Financial Statement Articulation: How Income, Balance Sheet and Cash Flow Link
• ROI vs ROCE: Measuring Returns on Investment and on Capital Employed
• Performance Evaluation Exercise: Calculating Returns from a Case Company's Accounts

Day 2: Strategic Financial Evaluation

• Projections vs Actuals: Testing a Strategy Early Through Forecast Financial Statements
• Short-Term Success Evaluation: Measures That Show Whether a Plan Is on Track
• Buy, Sell or Hold Decisions: Evaluating Investments Against Their Expected Returns
• Financial Performance Measurement Systems: Comparing Results with Set Targets
• Annual Reports and Corporate Governance: Reading Disclosures That Signal Financial Health

Day 3: Industry Analysis, Treasury and Financial Modelling

• NPV vs Payback Period: Valuing Cash Flows Compared with Counting Recovery Time
• Balanced Scorecard for Industry and Financial Analysis: Linking Measures Across Four Perspectives
• Treasury and Controllership Benchmarking: Comparing Practices with Peer Organisations
• Value Creation from Controllership: How Planning, Control and Reporting Add Value
• Financial Model Building: Structuring Assumptions, Calculations and Outputs for NPV Decisions

Day 4: Leading People and Strategy Around Financial Decisions

• Directive vs Coaching Leadership: When Each Suits Teams Facing Financial Targets
• People Management and Team Dynamics: Leading Teams Through Demanding Financial Goals
• Communication and Motivation: Explaining Financial Decisions So Teams Act on Them
• Coaching and Empowerment: Delegating Financial Responsibility to Line Managers
• Strategic Planning and Competitive Advantage: Linking Financial Objectives to the Mission

Day 5: Negotiation, Operational Excellence and the Decision Brief

• Positional vs Interest-Based Negotiation: Two Routes to Agreement on Business Terms
• Negotiating for Results: Applying Financial Evidence to Budget and Supplier Negotiations
• Operational Excellence and Continuous Improvement: Applying Performance Measures to Processes
• Employee Commitment: Applying Motivation Practices to Sustain Financial Performance Gains
• Financial Decision Brief: Finalising Statement Analysis, NPV Model and Investment Recommendation

Skills You Will Gain

• Financial Statement Analysis
• Return on Capital Measurement
• Investment Appraisal
• Financial Modelling
• Performance Measurement Design
• Treasury and Controllership Awareness
• Financial Communication
• Negotiation Planning

Why Attend This Course

• From accepting finance reports as given to reading how the three statements connect and what they reveal
• From judging investments by instinct to testing them with ROI, ROCE and NPV
• From isolated financial targets to measures linked across a Balanced Scorecard
• From unsupported proposals to a financial decision brief with a model and a clear recommendation

Conclusion

Finance and accounting give managers a shared language for judging whether plans create value and whether results match intentions. The course clarifies three distinctions: the roles of CFO, treasurer and controller, ROI versus ROCE, and NPV versus payback as investment tests. It suits managers and senior specialists who carry budget or investment responsibility and want five concentrated days of core practice, rather than a longer course that covers finance and accounting leadership in more depth.

Course FAQs

What is executive finance and accounting?

Executive finance and accounting is the practical understanding of financial statements, return measures, investment appraisal and performance measurement that managers outside finance use to evaluate plans, approve spending and explain financial results to their teams.

What is the difference between ROI and ROCE in executive finance and accounting?

ROI compares the gain from a specific investment with its cost. ROCE compares operating profit with all the capital a business employs, so it shows how efficiently the whole operation uses long-term funding rather than one project.

Which methods does the executive finance and accounting intensive follow?

The course uses ROCE and ROI for returns, NPV for investment appraisal through a structured financial model, and the Balanced Scorecard to link financial measures with customer, process and learning measures.

Is the executive finance and accounting intensive right for an operations manager?

Yes. An operations manager who controls budgets or proposes investments gains most from the sessions on statement articulation, ROCE, buy-sell-hold decisions and NPV modelling, which turn operational plans into financial cases.

What do delegates produce on the executive finance and accounting intensive?

Delegates produce a financial decision brief for a case investment, containing an analysis of the company's statements and returns, an NPV model with stated assumptions, and a recommendation to invest, hold or withdraw.