Performance Management course - 11 steps****

Course Contents

1. Performance review as a starting point.
• Gap variance analysis
• Strengths and weaknesses identified.
2. Performance opportunity identified
3. Performance goals and targets set (performance positioning)
4. Identifying the right business and marketing strategies
5. Simulate the right business models
6. Establish the ROE chart for the right business goals
7. Establishing the right key result areas
8. Performance measurement at all times and levels
9. Cascading to functional goals and lower levels
• Top down strategic maps
10. Identifying key result areas for each goal
11. Establishing achievable standards of performance.
• Establish key performance indicators at all value chain
12. Monitor and control performance through the performance metrics
13. Outsourcing decisions
14. Individual and team leaders scorecard
15. Performance appraisal,  review and recognition.
16. Improvement cycle - go back to (1)

Performance Leadership and Team Building *****

A short 2 day course for all work leaders

Target Groups:   Suitable for all supervisors, managers and directors.

Course Objective:  Provide knowledge and skills on how to manage performance effectively.  These leaders would become more quantitative in their management which include communication, problem solving, monitoring and appraising.

Course Benefits:   Continuous performance improvement at all levels.

Methodology:   using excel with full of metrics templates - please bring your note book.

Course Contents:-

1. Setting and drawing challenging job goals
• Benchmarking
• Past performance
2. Determining the right key result areas
• root cause analysis
3. Communicating expected performance
• setting improvement goals.
4. Solving performance gaps problems
• change
• strategies
• training.
5. Measuring efficiency and performance
• performance gaps
• dynamic ratios
6. Training for performance
• best practices
• innovation
7. Performance mapping
• strategic map
8. Outcome and Performance monitoring
• setting inputs and outputs measure
• Measuring before and after KPIs
9. Performance appraisals
• Performance improvement
• Performance gains
• Performance rewards
10. Rewarding performance
• bonus
• incentives

FINANCIAL STATEMENTS ANALYSIS

2

The following financial information relates to Wobnig Co.
 Income statement extracts
                                                           2011                  2010
                                                           $000                  $000
Revenue                                            14,525              10,375
Cost of sales                                     10,458               6,640
                                                        –––––––        –––––––
Profit before interest and tax               4,067                 3,735
Interest                                                 355                    292
                                                     –––––––           –––––––
Profit before tax                                3,712                 3,443
Taxation                                            1,485                 1,278
                                                         –––––––       –––––––
Distributable profit                             2,227                2,165
                                                         –––––––      –––––––


Statement of financial position extracts
                                                               2011                                    2010
                                             $000         $000                    $000         $000
Non-current assets                              15,284                                  14,602
Current assets
Inventory                               2,149                                   1,092
Trade receivables                  3,200                                    1,734
                                                            ––––––                                 ––––––
                                                               5,349                                   2,826
                                                          –––––––                               –––––––
Total assets                                             20,633                               17,428
                                                           –––––––                              –––––––
Current liabilities
                             Trade payables                2,865                               1,637
                             Overdraft                          1,500                                250
                                                                    ––––––                          ––––––
                                                                    4,365                                1,887
Equity
              Ordinary shares                               8,000                              8,000
                Reserves                                      4,268                                3,541
                                                                    ––––––                         ––––––
                                                                   12,268                             11,541

Long-term liabilities
                    7% Bonds                                 4,000                              4,000
––––––– –––––––
Total liabilities                                               20,633                             17,428
––––––– –––––––

Average ratios for the last two years for companies with similar business operations to Wobnig Co are as follows:
                          Current ratio 1·7 times
                          Quick ratio 1·1 times
                          Inventory days 55 days
                         Trade receivables days 60 days
                         Trade payables days 85 days
                         Sales revenue/net working capital 10 times

Required:

1. Using suitable working capital ratios and analysis of the financial information provided, evaluate whether Wobnig Co can be described as overtrading (undercapitalised). (12 marks)
2. Critically discuss the similarities and differences between working capital policies in the following areas:     
• Working capital investment
• Working capital financing. (9 marks)
3. Wobnig Co is considering using the Miller-Orr model to manage its cash flows. The minimum cash balance would be $200,000 and the spread is expected to be $75,000. Required:

• Calculate the Miller-Orr model upper limit and return point, and explain how these would be used to manage the cash balances of Wobnig Co. (4 marks)

(25 marks)