Strategic Financial Management and Value Creation

Strategy and Strategic Planning October 25, 2025
Enquire About This Course

Introduction

Strategic Financial Management is the application of financial tools and insights to support and drive strategic value creation, extending far beyond routine accounting. This course empowers strategists and financial professionals to work collaboratively, focusing on how capital structure, investment decisions, and financial planning can be explicitly aligned with competitive strategy. Participants will learn how to measure, manage, and maximize shareholder value, assess the financial viability of strategic initiatives, and use financial metrics to drive performance accountability across the organization. The core focus is on transforming the finance function from a reporting unit into a strategic partner.

Objectives

To equip leaders and finance professionals with the strategic financial tools necessary to drive value-based management, align capital allocation, and measure the success of strategic initiatives:

Target Audience

  • CFOs, Financial Controllers, and Treasury Managers.
  • Senior Managers in Strategic Planning and Corporate Development.
  • General Managers and Business Unit Leaders responsible for P&L.
  • Financial Analysts and Investors seeking a strategic perspective.
  • Anyone responsible for capital budgeting and resource allocation.
  • Heads of PMOs (Project Management Offices) involved in strategic project funding.

Methodology

  • Case studies focused on aligning financial decisions with competitive strategy.
  • Group exercise on calculating and interpreting ROIC and EVA for strategic units.
  • Workshop on integrating Real Options Analysis into investment evaluation.
  • Simulation of a strategic capital budgeting and portfolio prioritization session.
  • Expert panel discussion on current investor expectations and value drivers.

Personal Impact

  • Develop a strategic, value-first mindset for all financial decisions.
  • Master key financial metrics (ROIC, EVA) as strategic performance drivers.
  • Enhanced ability to critically evaluate and prioritize strategic investments.
  • Improved skill in using financial language to communicate strategic goals.
  • Increased understanding of how capital structure impacts competitive advantage.

Organizational Impact

  • Significantly improved shareholder value creation and total shareholder return (TSR).
  • More effective capital allocation aligned with long-term strategic priorities.
  • A higher ROI on strategic investments and reduced non-value-adding expenditures.
  • Improved financial discipline and accountability across business units.
  • Better communication and trust with the financial and investment community.

Course Outline

Unit 1: Value Creation as the Strategic Goal

Defining and Measuring Value
  • Understanding the concept of Shareholder Value Creation (SVC).
  • Key value metrics: NPV, IRR, Economic Value Added (EVA), and Return on Invested Capital (ROIC).
  • Linking financial performance measures to competitive strategy.
  • The strategic implications of capital structure and cost of capital (WACC).
The Strategic Role of Financial Management
  • The partnership between the CFO and the Strategy Office.
  • Moving beyond budget control to strategic financial planning.
  • Using financial analysis to test the feasibility of strategic hypotheses.

Unit 2: Capital Allocation and Strategic Investment

Capital Budgeting for Strategic Projects
  • Advanced techniques for evaluating investment proposals (e.g., risk-adjusted DCF).
  • Modeling and integrating strategic flexibility using Real Options Analysis (ROA).
  • Techniques for dealing with uncertainty in long-term strategic forecasts.
  • Prioritizing and balancing the capital expenditure portfolio.
Managing Financial Trade-offs
  • Strategic management of working capital and its impact on value.
  • Decisions between internal investment, acquisitions, and dividends/share buybacks.
  • The strategic use of debt financing and managing financial risk.

Unit 3: Financial Alignment and Performance Measurement

Linking Finance to the Balanced Scorecard (BSC)
  • Designing the Financial Perspective objectives on the BSC.
  • Defining key financial KPIs (e.g., ROIC, Cash Flow) as strategic measures.
  • Cascading financial accountability down to business units and functions.
  • Integrating financial targets with non-financial performance drivers.
Value-Based Management (VBM)
  • Implementing VBM principles across the organization.
  • Using financial metrics to drive accountability and incentivization.
  • The role of transfer pricing and internal reporting in reinforcing strategy.

Unit 4: Strategic Risk and Financial Foresight

Financial Risk Management
  • Identifying and managing strategic financial risks (currency, interest rate, liquidity).
  • The link between strategic choices and the cost of capital.
  • Stress-testing the strategic plan against adverse financial scenarios.
Financial Communication and Investor Relations
  • Communicating the strategic rationale and financial roadmap to the investment community.
  • Managing analyst expectations and market perception of strategic moves.
  • The role of ESG factors in strategic financial reporting and valuation.

Unit 5: Advanced Topics in Value Creation

Restructuring and Divestitures
  • Identifying underperforming assets and businesses for strategic divestiture.
  • Financial analysis of spin-offs, sell-offs, and liquidation.
  • Maximizing value through strategic financial restructuring.

Ready to Learn More?

Have questions about this course? Get in touch with our training consultants.

Submit Your Enquiry