There are no prerequisites.

Course Description

In most companies, budgets are used in ways that do not serve their true purpose. Instead of positioning resources in value-added venues, budgets have become tools to inventory resources and quantify their cost to the departments or functions that control them. They are also used to forecast earnings. These alternative applications distract management from the true task at hand, namely the deployment of resources beyond departmental boundaries into areas of opportunity for breakthrough performance.

The main purpose of this course is to help you build a platform for competitive advantage in your own organization. The organization that balances its business on a triad of strategic, tactical, and innovative initiatives is the one best able to achieve consistent breakthroughs in performance and outperform its competitors. Wealth-generating activity can only be achieved if the budget process in the organization can appropriate and allocate resources to perform underlying tasks, complete activities, and achieve breakthroughs.

The tools and techniques within this course will equip you with a renewed sense of purpose for your organization's budget process. Regardless of whether you apply it globally or locally, you will experience significant change in the attitudes and engagement level of managers involved in the budget process.


Mike Latimer, CPA, MBA

Mike Latimer, CPA, MBA, is a manager of consulting at Accretive Solutions with more than 10 years of consulting experience in accounting and finance as well as 20 years of experience as a planning executive in a variety of service industries. His consulting background includes management accounting and reporting, enterprise risk management, ASC 718 accounting and compliance, strategic management, and business modeling.

Mike is a Texas CPA with a BS in economics from Allegheny College and an MBA from the University of Chicago Graduate School of Business. Over the past 15 years, he has authored several articles and developed and taught a variety of CPE courses. Mike also has taught strategic management courses as an adjunct professor at the University of Dallas Graduate School of Management.

Course Specifics

Dec 12, 2017
There are no prerequisites.

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • Recognize the historical problems and limitations of conventional budgeting methods.
  • Recognize the purpose and proper role of the budgeting process and the product of that process.
  • Identify attributes of organizations that do not have to rely on budgets to achieve their performance objectives.

Chapter 2

  • Identify the ultimate purpose for resource budgeting.
  • Recognize the planning dynamics and components that drive competitive advantage.

Chapter 3

  • Recognize the activities contained in the hierarchy of organizational wealth and the characteristics of the different levels that an organizational strategy should target.

Chapter 4

  • Identify the stages and the sequence for formulating a business strategy.
  • Recognize the factors external to the organization that ultimately influence its choice of strategy.
  • Recognize methodologies for identifying industry opportunities and threats, as well as organizational strengths and weaknesses in your organization's planning process.

Chapter 5

  • Identify organizational difficulties and disruption that can be caused by strategy implementation.
  • Recognize the levels and components of a chart of strategic initiatives to document and communicate a balanced set of strategic activities to the operative levels in the organization.

Chapter 6

  • Identify the principal goals and objectives of resource budgeting, and the elements of strategic and tactical business initiatives.
  • Recognize components of the tactical planning process, the structure of a chart of tactical business initiatives, and their application in the tactical planning process.
  • Recognize the usage of the departmental budget templates to document the sources and uses of resources in the profit centers and support centers of an organization.

Chapter 7

  • Recognize the use and presentation application of the chart of strategic business initiatives to budget the cost of strategic activities in the various departmental areas of the organization.
  • Recognize how and where units of value originate and flow through the value chain of an organization.
  • Recognize the usage the chart of tactical business initiatives in budgeting the cost of tactical activities in the various departmental areas of the organization, and the documentation of the resulting tactical initiatives in a manner that distinguishes the economics of front-end versus back-end business operations.

Chapter 8

  • Recognize the application of the sources and uses of resources schedule in determining the validity of cost increases in departmental budgets.
  • Identify non-value-added discretionary activity costs in departmental budgets in order to free-up resources for strategic and tactical use.
  • Recognize effective capital budgeting policies and procedures to help ensure a strategic distribution of investment spending.

Chapter 9

  • Recognize terminology associated with innovation, characteristics of a company's vision statement, and the process of how a systematic approach to innovation contributes to balanced organizational wealth accumulation.
  • Identify the four functional entities that sustain the innovation process in an organization, as well as their applicable roles and responsibilities.

Chapter 10

  • Identify the activities in the innovation process, and the roles of the vision statement, mission statement, and statement of strategic imperatives in promoting innovative activity.
  • Recognize the importance of separate and specific innovation policies, procedures, information systems, and incentive programs in sustaining innovation.
  • Recognize the utilization of the sources and uses of resources approach in budgeting to document resource allocation to innovation initiatives.

Table of Contents


Chapter 1 – The Present State of Planning and Budgeting

Learning Objectives

Planning and Budgeting – A History of Shortcomings

Present Situation—Remarkably Unchanged and Unsophisticated

Where is Your Company on This Scale?

The Meaning of the Budget Product and the Process are Misconstrued

Chapter 1 – Review Questions

Chapter 2 – The Framework for Planning and Budgeting

Learning Objectives

The Purpose of Planning and Budgeting—Competitive Advantage

Chapter 2 – Review Questions

Chapter 3 – Step One: Knowing Where the Wealth Is

Learning Objectives

Knowing Where the Wealth Is


20th Century Examples:

21st Century Examples:


20th Century Examples:

21st Century Examples:

20th Century Examples:

21st Century Examples:


20th Century Examples:

21st Century Examples:

Long-Term Wealth Accumulation—A Question of Balance

Chapter 3 – Review Questions

Chapter 4 – Step Two: Formulating a Business Strategy

Learning Objectives

Formulating a Business Strategy

Step One—Justify the Need for a New Strategy

Step Two—Define the Nature and Purpose of the Business

Step Three—Analyze Opportunities and Threats in the External Business Environment






Bargaining Power of Suppliers

Bargaining Power of Buyers

Threat of New Entrants

Substitute Products and Services

Rivalry among Existing Competitors

Step Four—Analyze Internal Strengths and Weaknesses in the Organization

Evaluating Core Competencies

Case in Point

Case in Point

Step Five—Elect a Strategic Orientation Optimizing Strengths and Weaknesses Relative to Opportunities and Threats

Chapter 4 – Review Questions

Chapter 5 – Step Three: Implementing the Strategy

Learning Objectives

Implementing the Strategy

Case in Point

Chart of Strategic Initiatives Level I—Balanced Scorecard Categories

Chart of Strategic Initiatives Level II—Key Performance Outcomes

Chart of Strategic Initiatives Level III—Critical Business Activities

Chart of Strategic Initiatives Level IV—Functional Responsibilities

Strategic Human Resources Sidebar

Chart of Strategic Initiatives Level V—Participating Resources

Background Information

Chapter 5 – Review Questions

Chapter 6 – Step Four: Budgeting the Requisite Resources

Learning Objectives

Budgeting the Requisite Resources

Strategic Sidebar

Tactical Initiatives

Structuring the Tactical Planning Process

Are All of These Charts Really Necessary?

Structuring the Chart of Tactical Business Initiatives

Chart of Tactical Initiatives Level I—Business Segments

Chart of Tactical Initiatives Level II—Business Processes

Chart of Tactical Initiatives Level III—Value Chain Activities

Chart of Tactical Initiatives Level IV—Improvement Initiatives

Chart of Tactical Initiatives Level V—Resource Responsibility

Resource Budgeting Step One—Quantifying Support Center Costs

Chapter 6 – Review Questions

Chapter 7 – Budgeting Strategic and Tactical Business Initiatives

Learning Objectives

FYI, Inc.—Strategic Activity Functional Responsibilities

FYI, Inc. Chart of Strategic Business Initiatives—Example Company Acquisition

Value Chain Activity Based Budget Example—FYI, Inc.

Step One—Separate the Organization into its Primary Business Functions

Category I—Customer sourcing and initiation (new customers only)

Category II—Product manufacturing and servicing (new and existing customers)

Step Two—Estimate the Potential and Remainder Units of Value for Each Function

Step Three—Identify the Opportunities and Targeted Tactical Initiatives

Step Four—Quantify the Benefit of Each Tactical Initiative

Step Five—Compile the Cost to Execute Each Initiative

Chapter 7 – Review Questions

Chapter 8 – Funding Strategic and Tactical Business Initiatives

Learning Objectives

Resource Requirements

Discretionary Activity Costs

Strategic Capital Budgeting

Capital Budget Policies, Procedures, and Guidelines

Chapter 8 – Review Questions

Chapter 9 – The Point of Innovation

Learning Objectives


The Four Players

The F-O-U-R Steps

The People of Innovation

The Project Task Force

The Operating Department Heads

The Selection and Evaluation Committee (SEC)

Chapter 9 – Review Questions

Chapter 10 – The Process of Innovation

Learning Objectives

Fostering Innovation

Depts / Units

Orchestrating Innovation

Underwriting Innovation

Level I

Level II

Rewarding Innovation

Reward System

Recognition System

Course Summary and Conclusion

Chapter 10 – Review Questions


Review Question Answers and Rationales



Qualified Assessment

Answer Sheet

Course Evaluation

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