Project financial management goes well beyond simply planning, capturing, and managing costs on individual projects. It must also address the customer’s need to maintain a balance between the project investment and the expected benefits or returns associated with that project, the potential impact on other projects in the portfolio, and the overall impact on their business results (PMI.org).
Traditionally, the Project Manager’s focus was to bring a project in on time and on budget. In today’s changing environment, the scope of the Project Manager’s job is becoming increasingly broader. As organisations become increasingly project based, Project Managers need to be more financially savvy. Not only must projects be on time and on budget, but they also need to contribute to both shareholder value and the long-term financial success of the business. Looking at projects as “ventures” will require Project Managers to better understand the company’s cash cycle and how each project fits into it (PMI.org).
This continuous professional development activity will explore fundamental financial analysis concepts and terms that project managers should be familiar with.
By the end of the programme, participants will be able to:
- Understand the language associated with finance
- Know how and when to use financial terms and analysis techniques
- Read and assess project’s performance using financial statements
- Recognize the link between project strategy and financial objectives
- Use “the numbers” to their best advantage to make more informed decisions.
The role of financial control in project management.
The application of basic financial knowledge in project management: How to interpret financial statements
- How to read balance sheet
- The origin of balance sheet
- The structure and content of balance sheet
- How to understand the balance logic in balance sheet
- How to read income statement
- The content of income statement
- Decomposition of income statement
- The relationship between balance sheet and income statement
- The comprehensive interpretation of financial statements
The financial accounting method and the financial reporting system in project management
- Two sorts of accounting methods in project management
- The relationship between project accounting and overall accounting
- The financial report system in project management
The project cost management
- The common financial analysis methods in project management
- The concept of cost and cost control in project management
- How to apply the investment decision methods in project management
- The cash flow analysis in the investment activities
- Internal rate of returns, net present value, investment recovery period
- Numeric and non-numeric methods
- The financial cost control in the project structure building up and project schedule planning
- Work breakdown structure – understanding the formation of project budget
- The project progress and the dynamic cost control
- The cost deviation and the progress deviation
The project budget management
- The steps of the project planning
- The key steps of project cost control: defining the project scope and milestones
- Illustration of key terms and concepts
- Preparation and discussion of practical examples, including mini cases
- The course will have both a theoretical and practical framework with real examples drawn from actual companies, local and international
- Activities and Break-out groups
This programme may be approved for up to 7 CPD units in Project Management. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.
Professionals requiring CPD units to meet the education requirements for an occupational licence renewal, and/or for maintaining other professional memberships/certifications which accept CPD in Project Management, are advised to consider training subjects in categories that indicate CPD in Project Management.
Who Should Attend
The programme is ideal for project managers at any level that are engaged in business decision making or engage in any way to the project management process and would like to acquire a basic overview of the topic.