P&L and Finance Skills for Technical Leaders
Finance is the language and scorecard of business. It is critical to have a solid understanding of financial concepts as they relate to budgeting, product profit performance and recommending new programs for projects or other R&D efforts. This product management course provides critical finance skills to participate in these activities.
Key questions we will answer in this course include:
- How can you read a profit and loss statement to determine how your products contribute to the company?
- Which variables are most important to your financial leaders?
- How you you optimize your profit by focusing on the right financial metrics?
- What are key financial terms you need to know and how best to communicate them with executives?
- What are the different types of margin and profit and why are they important to know?
- How should you optimize costs and expenses to improve your bottom line?
- How can you optimize one product, a product line or a category when analyzing a whole portfolio?
PART 1: UNDERSTANDING INCOME AND PROFIT AND LOSS STATEMENTS
You’ll start with a foundation of understanding the primary scorecard of every product or category – the profit and loss statement.
- Income statements vs. cash flow – What each is and why they are both important
- Key metrics corporate management uses to monitor the business
- Understanding Profit and Loss Statements: Section by section
- Defining gross and net revenue from an accounting perspective
- Costs of Goods Sold including fixed vs. variable costs, etc.
- Understanding operating expenses
- Calculating gross, operating and net margins and profit
PART 2: KEY PRINCIPLES OF COST ACCOUNTING
- Understanding burden, overhead and standard costing
- Calculating and accounting for depreciation
- Understanding capital costs vs. operating expenses
- Developing a personal and department budget
PART 3: FOUNDATIONS OF PRO FORMA ANALYSIS
- Using a P&L statement as basis for pro forma financials
- Setting up your spreadsheets for success
- Understanding the time value of money
- Calculating Return on Investment (ROI)
- Using NPV and IRR to calculate a series of cash flows
- Forecasting Current Projects and Products
Each participant will receive:
Product Management Excellence E-book: A complete understanding of the overall Product Management Market Success Process.
Product Management Templates: A full set of templates of the key tools and step-by-step instructions for each method.
Who Should Attend
This program is designed for anyone involved in product development who wants to become more customer-focused and develop deeper strategic skills, including:
- Product Managers and those looking to transition to product management
- Product marketers
- Engineering Managers and leaders
- Embedded software developers and leads
- Application engineers, test managers and other supporting functions
- Project Managers
- Directors and executives
Contact us for facilitation and pricing options.
Product Definition and Roadmaps
Contact Us to Schedule
Garth Weber, Mechanical Engineer
Chatree Sitalasai, Engineering Supervisor
Mel Greenberg, Manager
Portland General Electric
Dwaine Gilmer, Escalation Engineer
Mark Johnson, VP of Marketing
A '10' in terms of content and presentation. Very interactive and useful right away.
Sushil Nema, Engineer
Paul L. Fernandez, Jr., Sr. Engineer
The best part was how to sell an idea to executives. Very useful tips and I can see mistakes I made in the past.
This program opened my eyes to new approaches to manage innovation. Well done and a lot of material in a short time.