Battle-tested Best Practices in Planning and Budgeting Part 1
Creating an overall direction for your company or workgroup is critical for company success. However, in business as on the battlefield you will always operate in the absence of complete information, yet you must act. As a finance executive, you make critical decisions that affect the company “mission” at hand, regardless of the uncertainty each day will bring. Your challenge is to build a framework for action that brings order to chaos and drives your company to success. According to a recent IBM survey of over 1,000 chief financial officers around the globe, 75% responded that a large portion of their team’s functions include strategic planning and coordinating and consolidating the planning activities of the entire organization. Why is it that many companies fail to plan or fail to execute the plan? It is because they lack the ethos and process to plan and execute. Without that framework you enter each day lacking the confidence that the actions taken are the right actions, at the right time, to achieve the objectives. The planning process includes: Strategic Planning, Operational Planning, and Financial Planning. It’s the integration of these plans that provides the mechanism to adjust to the actual scenario.