{"product_id":"financial-planning-analysis-and-performance-management-isbn-9781119491484","title":"Financial Planning \u0026 Analysis and Performance Management","description":"\u003cp\u003e\u003cb\u003eCritical insights for savvy financial analysts \u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eFinancial Planning \u0026amp; Analysis and Performance Management\u003c\/i\u003e is the essential desk reference for CFOs, FP\u0026amp;A professionals, investment banking professionals, and equity research analysts. With thought-provoking discussion and refreshing perspective, this book provides insightful reference for critical areas that directly impact an organization’s effectiveness. From budgeting and forecasting, analysis, and performance management, to financial communication, metrics, and benchmarking, these insights delve into the cornerstones of business and value drivers. Dashboards, graphs, and other visual aids illustrate complex concepts and provide reference at a glance, while the author’s experience as a CFO, educator, and general manager leads to comprehensive and practical analytical techniques for real world application.\u003c\/p\u003e \u003cp\u003eFinancial analysts are under constant pressure to perform at higher and higher levels within the realm of this consistently challenging function. Though areas ripe for improvement abound, true resources are scarce—until now. This book provides real-world guidance for analysts ready to:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eAssess performance of FP\u0026amp;A function and develop improvement program\u003c\/li\u003e \u003cli\u003eImprove planning and forecasting with new and provocative thinking\u003c\/li\u003e \u003cli\u003eStep up your game with leading edge analytical tools and practical solutions\u003c\/li\u003e \u003cli\u003ePlan, analyze and improve critical business and value drivers\u003c\/li\u003e \u003cli\u003eBuild analytical capability and effective presentation of financial information\u003c\/li\u003e \u003cli\u003eEffectively evaluate capital investments in uncertain times\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eThe most effective analysts are those who are constantly striving for improvement, always seeking new solutions, and forever in pursuit of enlightening resources with real, useful information. Packed with examples, practical solutions, models, and novel approaches, \u003ci\u003eFinancial Planning \u0026amp; Analysis and Performance Management\u003c\/i\u003e is an invaluable addition to the analyst’s professional library. Access to a website with many of the tools introduced are included with the purchase of the book. Please see About the Website page for access instructions.\u003cbr\u003e\u003c\/p\u003e \u003cp\u003ePreface xv\u003c\/p\u003e \u003cp\u003eAbout the Website xix\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Financial Planning \u0026amp; Analysis and Business Performance Management 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Problem with Traditional Measurement Systems 1\u003c\/p\u003e \u003cp\u003eObjectives of Financial Analysis and Performance\u003c\/p\u003e \u003cp\u003eManagement 3\u003c\/p\u003e \u003cp\u003ePreview of the Book 6\u003c\/p\u003e \u003cp\u003eSummary 9\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart One Fundamentals and Key FP\u0026amp;A Capabilities\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Fundamentals of Finance 13\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBasics of Accounting and Financial Statements 13\u003c\/p\u003e \u003cp\u003eFinancial Ratios and Indicators 19\u003c\/p\u003e \u003cp\u003eSummary 42\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 Key Analytical Tools and Concepts 43\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBasic Statistical Tools 43\u003c\/p\u003e \u003cp\u003eThe Business Model 59\u003c\/p\u003e \u003cp\u003eSummary 69\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Developing Predictive and Analytical Models 71\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Is a Financial Model? 71\u003c\/p\u003e \u003cp\u003eSummary 81\u003c\/p\u003e \u003cp\u003eAppendix: Illustrative Model 81\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Building Analytical Capability 89\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFor the Individual 90\u003c\/p\u003e \u003cp\u003eFor the Organization 94\u003c\/p\u003e \u003cp\u003eSummary 108\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Communicating and Presenting Financial Information 109\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLaying the Foundation for Success 110\u003c\/p\u003e \u003cp\u003eDeveloping Effective Presentations and Reports 117\u003c\/p\u003e \u003cp\u003eDelivering the Presentation 120\u003c\/p\u003e \u003cp\u003eData Visualization and Presentation: A Picture Is Worth a Thousand Words 121\u003c\/p\u003e \u003cp\u003eSummary 134\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Two Performance Management\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Business Performance Management 137\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Is Business Performance Management? 138\u003c\/p\u003e \u003cp\u003eDeveloping or Enhancing BPM in an Organization 144\u003c\/p\u003e \u003cp\u003eSummary 155\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Dashboards and Key Performance Indicators 157\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eObjectives of Dashboards and Key Performance Indicators 157\u003c\/p\u003e \u003cp\u003eSelecting Appropriate Performance Measures and Key\u003c\/p\u003e \u003cp\u003ePerformance Indicators 160\u003c\/p\u003e \u003cp\u003eCreating Performance Dashboards 166\u003c\/p\u003e \u003cp\u003eSample Dashboards for Selected Industries 175\u003c\/p\u003e \u003cp\u003eSummary 175\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Institutionalizing Performance Management 179\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGaining Traction 179\u003c\/p\u003e \u003cp\u003eIntegrating Business Performance Management with Other\u003c\/p\u003e \u003cp\u003eManagement Processes 183\u003c\/p\u003e \u003cp\u003eAvoiding Common Mistakes 189\u003c\/p\u003e \u003cp\u003eSummary 191\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Measuring and DrivingWhat’s Important:Innovation, Agility, and Human Capital 193\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInnovation 194\u003c\/p\u003e \u003cp\u003eMeasuring and Driving Business Agility 204\u003c\/p\u003e \u003cp\u003eHuman Capital Management 214\u003c\/p\u003e \u003cp\u003eHCM Dashboard 226\u003c\/p\u003e \u003cp\u003eSummary 226\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 The External View: Benchmarking Performance and Competitive Analysis 227\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAnalysis of Markets, Customers, and Competitors 228\u003c\/p\u003e \u003cp\u003eBenchmarking to Evaluate Performance 232\u003c\/p\u003e \u003cp\u003eUsing Benchmarks to Set Enterprise Goals for Performance and Value Creation 242\u003c\/p\u003e \u003cp\u003eSummary 243\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Three Business Projections and Plans\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Business Projections and Plans: Introduction and Best Practices 247\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOverview of Business Planning and Projections 248\u003c\/p\u003e \u003cp\u003eBest Practices in Projecting Future Financial Results 252\u003c\/p\u003e \u003cp\u003eSummary 266\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Budgets, Operating Plans, and Forecasts 267\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Budgeting Process 267\u003c\/p\u003e \u003cp\u003eThe Operating Plan 272\u003c\/p\u003e \u003cp\u003eBusiness Forecasts and Outlooks 277\u003c\/p\u003e \u003cp\u003eSummary 301\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 Long-Term Projections 303\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUnique Challenges in Estimating Long-Term Performance 304\u003c\/p\u003e \u003cp\u003eApplications of Long-Term Projections 305\u003c\/p\u003e \u003cp\u003eDeveloping Long-Term Projections 307\u003c\/p\u003e \u003cp\u003ePresentation of Long-Term Projections 319\u003c\/p\u003e \u003cp\u003eSummary 325\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Four Planning and Analysis for Critical Business and Value Drivers\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 Revenue and Gross Margins 329\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRevenue Growth: Key Drivers 330\u003c\/p\u003e \u003cp\u003eKey Performance Measures: Revenue Growth 343\u003c\/p\u003e \u003cp\u003eRevenue Dashboard 351\u003c\/p\u003e \u003cp\u003eGross Margins and Relative Pricing Strength 351\u003c\/p\u003e \u003cp\u003eMeasures of Relative Pricing Strength 356\u003c\/p\u003e \u003cp\u003eSummary 359\u003c\/p\u003e \u003cp\u003e\u003cb\u003e16 Operating Expenses and Effectiveness 361\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDrivers of Operating Effectiveness 362\u003c\/p\u003e \u003cp\u003eKey Performance Indicators: Operating Effectiveness 365\u003c\/p\u003e \u003cp\u003eTools for Assessing and Improving Operating Effectivenss 382\u003c\/p\u003e \u003cp\u003eSummary 387\u003c\/p\u003e \u003cp\u003e\u003cb\u003e17 Capital Management and Cash Flow:Working Capital 389\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCritical Success Factors 391\u003c\/p\u003e \u003cp\u003eOperating Capital Management 393\u003c\/p\u003e \u003cp\u003eUnderstanding the Dynamics of Operating Capital 394\u003c\/p\u003e \u003cp\u003eUnleashing the Value Trapped in Operating Capital 396\u003c\/p\u003e \u003cp\u003eAccounts Receivable 398\u003c\/p\u003e \u003cp\u003eKey Performance Indicators for the Revenue Process and\u003c\/p\u003e \u003cp\u003eAccounts Receivable 401\u003c\/p\u003e \u003cp\u003eInventories 410\u003c\/p\u003e \u003cp\u003eSummary 420\u003c\/p\u003e \u003cp\u003e\u003cb\u003e18 Capital Management and Cash Flow:Long-Term Assets 421\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCapital Intensity 421\u003c\/p\u003e \u003cp\u003eTools for Improving the Management of Long-Term Capital 424\u003c\/p\u003e \u003cp\u003eProjecting Capital Investments and Depreciation 428\u003c\/p\u003e \u003cp\u003eKey Performance Indicators for Capital Intensity 431\u003c\/p\u003e \u003cp\u003eIntangible Assets 433\u003c\/p\u003e \u003cp\u003eKey Performance Indicators: Goodwill and Intangible Assets 434\u003c\/p\u003e \u003cp\u003eExcess Cash Balances 436\u003c\/p\u003e \u003cp\u003eLong-Term Capital Dashboard 437\u003c\/p\u003e \u003cp\u003eSummary 439\u003c\/p\u003e \u003cp\u003e\u003cb\u003e19 Risk, Uncertainty, and the Cost of Capital 441\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Time Value of Money 441\u003c\/p\u003e \u003cp\u003eThe Cost of Capital 449\u003c\/p\u003e \u003cp\u003ePerformance Measures 458\u003c\/p\u003e \u003cp\u003eSummary 461\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Five Valuation and Capital Investment Decisions\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e20 Capital Investment Decisions: Introduction and Key Concepts 465\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Capital Investment Process 466\u003c\/p\u003e \u003cp\u003eEvaluating the Economic Merits of Capital Investments 469\u003c\/p\u003e \u003cp\u003eIllustrations 478\u003c\/p\u003e \u003cp\u003eSummary 484\u003c\/p\u003e \u003cp\u003e\u003cb\u003e21 Capital Investment Decisions: Advanced Topics 485\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDealing with Risk and Uncertainty in Capital Investment\u003c\/p\u003e \u003cp\u003eDecisions 485\u003c\/p\u003e \u003cp\u003ePresenting Capital Investment Decisions 499\u003c\/p\u003e \u003cp\u003eCapital Budgeting and Rationing 500\u003c\/p\u003e \u003cp\u003eEvaluating the Effectiveness of the Capital Investment\u003c\/p\u003e \u003cp\u003eDecision Process 502\u003c\/p\u003e \u003cp\u003eSummary 505\u003c\/p\u003e \u003cp\u003e\u003cb\u003e22 Business Valuation and Value Drivers 507\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEstimating the Value of a Business by Discounting Future\u003c\/p\u003e \u003cp\u003eCash Flows 508\u003c\/p\u003e \u003cp\u003eEstimating the Value of Firms by Using the Valuation\u003c\/p\u003e \u003cp\u003eof Similar Firms: Multiples of Revenues, Earnings,\u003c\/p\u003e \u003cp\u003eand Related Measures 517\u003c\/p\u003e \u003cp\u003eBuilding Shareholder Value in a Multiples Framework 521\u003c\/p\u003e \u003cp\u003eIntegrated Valuation Summary for Roberts Manufacturing\u003c\/p\u003e \u003cp\u003eCompany 525\u003c\/p\u003e \u003cp\u003eValue Drivers 528\u003c\/p\u003e \u003cp\u003eSummary 533\u003c\/p\u003e \u003cp\u003e\u003cb\u003e23 Analysis of Mergers and Acquisitions 535\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Acquisition Challenge 535\u003c\/p\u003e \u003cp\u003eKey Elements in Valuing an Acquisition 537\u003c\/p\u003e \u003cp\u003eMethods and Metrics for Valuing an Acquisition 539\u003c\/p\u003e \u003cp\u003eCommon Mistakes in M\u0026amp;A 554\u003c\/p\u003e \u003cp\u003eBest Practices and Critical Success Factors 557\u003c\/p\u003e \u003cp\u003eUnderstanding Seller Best Practices 560\u003c\/p\u003e \u003cp\u003eKey Performance Indicators for M\u0026amp;A 562\u003c\/p\u003e \u003cp\u003eDashboards for M\u0026amp;A 564\u003c\/p\u003e \u003cp\u003eSummary 564\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Six Summary\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e24 Summary and Where to from Here? 569\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eKey Takeaways 569\u003c\/p\u003e \u003cp\u003eWhere to from Here? 572\u003c\/p\u003e \u003cp\u003eGlossary 575\u003c\/p\u003e \u003cp\u003eAcknowledgments 585\u003c\/p\u003e \u003cp\u003eAbout the Author 587\u003c\/p\u003e \u003cp\u003eIndex 589\u003c\/p\u003e   \u003cp\u003e\u003cb\u003eJACK ALEXANDER\u003c\/b\u003e is an experienced CFO and operating executive turned consultant, author, and educator. As the founder of Jack Alexander \u0026amp; Associates, LLC, he provides advice to businesses across a wide range of financial and operating areas, with a focus and passion on Financial Planning \u0026amp; Analysis (FP\u0026amp;A) and Performance Management (PM). The firm also offers customized training and workshops on FP\u0026amp;A. He is a frequent speaker on FP\u0026amp;A and PM. He is the author of \u003ci\u003ePerformance Dashboards and Analysis for Value Creation\u003c\/i\u003e and \u003ci\u003eFinancial Planning and Analysis and Performance Management,\u003c\/i\u003e both from Wiley.    \u003c\/p\u003e\u003cp\u003e\u003ci\u003eFinancial Planning \u0026amp; Analysis and Performance Management\u003c\/i\u003e offers a comprehensive and down-to-earth guide to financial planning and analysis (FP\u0026amp;A). Written by Jack Alexander, a former CFO and the author of \u003ci\u003ePerformance Dashboards and Analysis for Value Creation,\u003c\/i\u003e this important text is filled with illustrative examples and visual aids and provides real-world guidance for professionals responsible for assessing and improving the performance of the FP\u0026amp;A function. Throughout the book, Alexander includes the most current thinking and shows how to put into practice leading edge tools to plan, analyze, and improve vital business and value drivers. In addition, the text reveals what it takes to build analytical capability and to effectively present financial information. \u003c\/p\u003e\u003cp\u003e\u003ci\u003eFinancial Planning \u0026amp; Analysis and Performance Management\u003c\/i\u003e offers CFOs, FP\u0026amp;A professionals, investment banking professionals, and equity research analysts an important text that covers the fundamentals of finance through advanced topics and best practices. The author examines the key analytical tools and identifies the best practices in selecting key performance indicators (KPI's) and developing effective dashboards. It provides guidance on developing projections in uncertain times including budgets, operating plans, rolling forecasts, and long-term projections. The author also presents analytical frameworks for evaluating capital investment decisions, business valuations, value drivers, and mergers and acquisitions. Insightful guidance is provided on extending FP\u0026amp;A to important areas including innovation, agility, human capital management and competitor analysis. Throughout the text, author Jack Alexander offers an insightful CFO perspective to the critical areas that directly impact an organization's success. \u003c\/p\u003e\u003cp\u003eFilled with dashboards, graphs, and other visual aids the text also includes a companion website that offers a number of illustrative performance dashboards, analysis, and Excel models that are highlighted in the book. \u003c\/p\u003e\u003cp\u003eIn today's highly competitive environment, financial analysts must perform at higher and higher levels within the realm of their consistently challenging function. Though areas ripe for improvement abound, true resources are scarce—until now. \u003ci\u003eFinancial Planning \u0026amp; Analysis and Performance Management\u003c\/i\u003e provides real-world guidance for analysts who want to excel at their profession.     \u003c\/p\u003e\u003cp\u003e\u003cb\u003ePraise for Financial Planning \u0026amp; Analysis and Performance Management\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e\"\u003ci\u003eFinancial Planning \u0026amp; Analysis and Performance Management\u003c\/i\u003e provides a comprehensive yet pragmatic framework to deliver value from finance and contribute to overall business success. Addressing not only the science but the 'art' of FP\u0026amp;A, a truly valuable resource to both the finance executive defining the roadmap to FP\u0026amp;A excellence and the analyst establishing credibility as a business partner.\" \u003cb\u003e —Michael Rossi, MBA,\u003c\/b\u003e Healthcare CFO \u003c\/p\u003e\u003cp\u003e\"Beyond academic theory, I have witnessed firsthand Alexander's framework-driven concepts improve firm profitability and value. This comprehensive book is a required read and reference for finance executives and FP\u0026amp;A teams.\" \u003cb\u003e —William W. Benton, CFA,\u003c\/b\u003e Investment Analyst, Partner, William Blair Investment   Management, LLC \u003c\/p\u003e\u003cp\u003e\"Well written and comprehensive, Jack Alexander's latest work leads you to the true drivers of business performance in a business world awash with detached KPI's and useless dashboards. An essential read for any Human Resources leader who wants to speak intelligently about the business and to be an effective business partner. The sections on Innovation, Agility, and Human Capital Management are refreshing and precisely on target.\" \u003cb\u003e —Warren Davis,\u003c\/b\u003e Vice President, Human Resources, JMA Wireless \u003c\/p\u003e\u003cp\u003e\"A terrific resource for all finance professionals, with actionable content for improving key areas of FP\u0026amp;A. Once again, Jack has captured practical tools and techniques, providing them for such critical areas as analysis, modeling, rolling forecasts, KPI's and dashboards, valuation and capital investment decisions. The book will serve as a great future reference for our FP\u0026amp;A group.\" \u003cb\u003e —Dan Heaney, CFO,\u003c\/b\u003e Public Consulting Group \u003c\/p\u003e\u003cp\u003e\"\u003ci\u003eFinancial Planning \u0026amp; Analysis and Performance Management\u003c\/i\u003e is an invaluable reference tool for finance professionals from entry-level to CFO, written with a refreshing clarity that non-finance professionals also will appreciate. The practical techniques, KPI's and dashboards are easy to execute with the power to transform your business's decision-making and drive operating performance and profitability.\" \u003cb\u003e —Laura J. Goedken, CFO,\u003c\/b\u003e TaxAct, Inc.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989211529445,"sku":"NP9781119491484","price":71.99,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119491484.jpg?v=1761783225","url":"https:\/\/k12savings.com\/es\/products\/financial-planning-analysis-and-performance-management-isbn-9781119491484","provider":"K12savings","version":"1.0","type":"link"}