Project 1 Task 3 of 3: Implementation Phase

Using the team budget or financial plan in Task 1

3. Before implementation of a budget or financial plan it is important that all members of the
team who are impacted by the plan are involved in its formation and implementation.

Using team budget or financial plan from Task 1 explain in a report:

 The organisational process required to disseminate the relevant details of the agreed
plan (not the contingency plan)

As part of the review and evaluation of financial decisions there are some aspects to take into
account:

1. Collect and organize for analysis, data and information on the effectiveness of financial
management processes within the work team

2. Analyse data and information on the effectiveness of financial management processes within
the work team and identify, document and recommend any improvements to existing processes

3. Implement and monitor agreed improvements in line with financial objectives of the work team
and the organisation

Whirlpool experience: To communicate all negotiations, procedures, news and other relevant
information was strategic as part of my middle role between Whirlpool Corporation and Trade
partners. In marketing or sales teams it is important that all relevant personnel receive important
details about the agreed budget/financial plans.

Communication

It is vital that product, promotion an specially price changes and pricing policies are communicated
to staff members to ensure they are all on the same page and can work cohesively.

Most of this communication was deliver on committees and team meetings; however written
communication was mandatory and useful especially with sternal stakeholders for the purposes
of:

 Ensuring everyone gets the same message

 Ensuring there is a record of communication
 People can refer to the contents of the communication later (if need be)

Pricing policies and changes were likely to be communicated in stores on a vertical level – in my
role as the manager I hold a staff meeting to inform employees of this information. We had regular
meeting every month but if you got any important change I delivered a second meeting or my
supervisor were responsible as well for spread all the information among sales member at national
level.

 The steps taken to disseminate the information. Examples may include meeting, emails,
tool box talks, etc.
 Departmental (National sales team) meetings where information was delivered verbally
and face-to-face. All staff meetings where a series of overhead projections (or a
PowerPoint presentation) were used.
Internal memos or emails sent to staff. Paper-based documentation that outlines, without
being too specific, the requirements that have been decided on. Certainly, where staff
were informed and involved (wherever that was possible.

 The methods you would use to communicate and gain agreement on the details of the
plan.
o The team roles and responsibilities that you would allocate to your team before
implementation of the budget or financial plan.

People who may be informed include:

Country manager Whirlpool: Responsible for deliver full details of the budget/financial plans (as
they are responsible for it).

Managers: Middle level management (people such as heads of department) commonly have daily
control over the revenue raising areas of the property and power over relevant areas of
expenditure. It is predominantly these individuals who are responsible for generating the bulk of
the income, and whose decisions have immense impact on the profitability and viability of the
premises; while they operate under direction from senior management, they make numerous day
to-day and on-the-spot decisions that have the potential to greatly impact on budget figures.

The accounts team member: KEY ACCOUNT MANAGER. Responsible to enter the figures into
appropriate software and create the necessary budget lines, monitoring sales and promotion
activities, communication with sales member in stores, etc.

Budget committee: They are responsible for ongoing monitoring of income and revenue against
projections. Their role may also extend beyond this overseeing role, into proposals for increasing
revenue streams and limiting/reducing expenditures, as appropriate.

Establishment staff: the head of department usually explains the latest budget allocations to
departmental staff. This news is traditionally passed on verbally in a formal departmental meeting
as well as written information being distributed. The head of department commonly sets the scene
by explaining the general budgetary context and the trading situation the establishment finds itself
in general statements are normally used to describe the current situation as it compares to the last
period. Next, further general statements are made about what management expects from the
department (and by association, the staff); it is not common to pass on exact dollar figures to the
staff as this is seen as material that is 'commercial in confidence'. Staff may be told that there is an
expectation that, for example, they are expected to increase revenue in the upcoming 12-month
period by an average of 10% over the previous year: this indicates management requirements
without disclosing the actual figures involved. Staff may be informed, for example, that there is an
expectation for expenses to be reduced by five per cent. It is always important to convey this sort
of news within a positive context, wherever possible, to reduce the possibility of staff
disillusionment and the likelihood that staff may misinterpret 'economic imperatives' as signals
that their job is in jeopardy. When staff pick up this sort of message they commonly start looking
for employment elsewhere because they can 'see the writing on the wall'.

Examples of team roles may include:

 Arranging for use of corporate credit cards

 Banking
 Debt collection
 Ensuring security, accuracy and currency of financial operations
 Invoicing clients, customers and consumers
 Maintaining journals, ledgers and other record keeping systems
 Maintaining petty cash system
 Purchasing and procurement
 Wages and salaries payment and record keeping

 The feedback processes you would use to ensure that members of your team understand
their roles, responsibilities and the objectives of the budget and financial plan.
When informing staff, you need to bear the following in mind:
 Be clear and concise – don't leave room for interpretation
 Check they understand – make sure your instructions have been
understood and provide clarification
 Consider cultural differences – use suitable languages and avoid slang

It is important to deliver clear message by person to understand roles and

positions.
Feedback weekly by meetings and measuring progress is relevant to
prevent mistakes or threats.

 The support methods or organisational processes you would use to ensure the team
members are able to perform the financial management roles they are allocated.

The types of support that can be offered include:

-Access to specialist advice – an advice service or someone on hand to answer any specialist
questions that team members will save time and ensure that roles are performed in a uniform
manner.
-Documentation of procedures – keeping records of procedures is a useful tool in
retrospectively identifying problems or issues. The documentation process also makes you
more aware of what you are doing, so you are less likely to become casual in your role/make
errors.
-Help desk or identified experts within the organisation – having specific personnel to use as a
first port of call for any queries will save time and make the problem solving process more
efficient. (IT Departments, Finance team, logistics)
 Information briefings or sessions – having meetings where finance management is explicitly
discussed is a great way to clarify the roles of team members and provides an opportunity for
staff to raise any issues they might have.
Intranet-based information – having an online resource for all employees to access at anytime
is extremely useful. It is a more efficient way of explaining processes and can provide
comprehensive guides to certain roles and situations.
-Training including mentoring, coaching and shadowing – having tailored demonstration,
monitoring and feedback on roles will ensure that each employee is performing their role to
the best of their abilities and in line with organisational policies.

Examples of support may include:

 Access to specialist advice

 Documentation of procedures
 Help desk or identified experts within the organisation
 Information briefings or sessions
 Internet-based information

Training including mentoring, coaching and shadowing

o The identified resources and organisational systems you would access and how you would use
them to manage the financial processes within the work team.

Examples of resources and systems may include:

 Hardware and software

 Human, physical or financial resources
 Record keeping systems (electronic and paper-based)
 Specialist advice or support.

Hardware and software

1. To determine the type of hardware – such as computers and necessary accessories – that
will fulfil the minimum requirements of financial management software.
2. The types of software you will need for financial management will include:

-A universal ledger – covering your general ledger, accounts payable, accounts receivable, fixed
assets, project accounting and other financial reporting requirements

- End to end spend management program – to allow the control of purchasing activity and to
organise it in one document. (SAP)

-Budgeting, planning and forecasting program (XERO, bw)

-Reporting program – to analyse the efficiency of the business processes (Sales sap, staff xero)

-Process and control automation program – to allow all operations to be managed and organised
into an auditable format
Human, physical or financial resources

Human resources: This includes all of the skill-sets that the business already has within its
personnel. They need to be sufficient to meet the needs of business in achieving its strategy – if
they aren't, can staff be trained efficiently.

Existing resources may include:

-Amount of staff in each role (take into account location, grade, experience, qualifications, pay)

-Rate of staff loss

-Training standards for key roles

-Intangibles e.g. morale, business culture, work relationships

Physical resources:

These include the following facilities:

-Production facilities – location, maintenance requirements, production processes, efficiency of

facilities for meeting business requirements

- Marketing facilities – distribution channels and marketing management process

- Information technology (IT) – what programs and equipment is used? How is it integrated with
customers and suppliers?

-Financial resources

This refers to the ability of a business to fund its chosen strategies – it includes the existing funds,
and the ability to source new funds.

Existing funds include:

Cash balances, Loans, Bank overdraft, Shareholders' capital, Capital invested in the business e.g.
stocks, debtors, Creditors e.g. suppliers, government

Record keeping systems (electronic and paper-based)

Businesses will need accurate and efficient record keeping systems to allow them to collect
revenue, pay employees and suppliers, and pay taxes in a timely manner and using the correct
processes.

 Paper-based record keeping: Also known as manual record keeping, this involves keeping a
paper-based journal of transactions for each financial year.

It is divided into the following types of sections:

Receipts, Payments, Wages and superannuation, Bank reconciliation, Inventory

This system requires a cash accounting approach, where revenue and expenses are recorded when
transactions actually occur – so, for example, when you receive the money as opposed to when
you send the invoice.

 Electronic record keeping

These are an efficient way of maintaining financial records, providing a comprehensive way of
managing all accounts under one program and giving the option of using accrual accounting
(recording revenue and expenses when they are incurred) – this means a sale is recording when an
invoice is created and sent as opposed to when you receive the payment from the client.

o Computer-based accounting programs can create the following:

-Orders

- Invoices

- Aged debtor reports

- Financial statements

- Employee pay records

- Inventory reports

Some programs have the ability to send (via direct email):

-Invoices to clients

- Orders to suppliers

Others can also produce financial forecasts and allow you to monitor business performance.

Whichever system you use, you need to make sure it is compatible with the systems of your book-
keeper and accountant. Also, consider the costs of keeping the software up-to-date and any
training costs for staff to use it.

Specialist advice or support

This advice/support can be internal or external to the company – examples include:

-Accountants

- Book-keepers

- Finance seminars

- Mentors

The areas they advise on are those which require specialist and technical knowledge. Trying to
manage finances of a business without the proper information is a huge risk and can lead to many
problems down the line. While it may seem like a high initial cost for advice, in the long-term it
should save you far more than it costs you.