Strategic planning budgeting

Strategic planning is a well structured and synchronized approach to deliver long-term organizational goals and for developing appropriate strategies. Strategic planning is one of the important steps of the organization in reaching towards the organization's mission. Strategic planning and budgeting process reduces costs and operating expenses with enhanced quality. Once the strategic planning framework is approves, then the senior management team will prepares Budgeting planning. The budget process consists of activities that encompass the development, implementation, and evaluation of a plan for the provision of services and capital assets. Mission of the Budget Process: To help decision makers make informed choices about the provision of services and capital assets and to promote stakeholder participation in the process.

A sound strategic plan Serve as a framework in taking decisions approval, explains the business to others in order to inform, motivate and involve, assists benchmarking and performance monitoring and also motivate changes and building block for future plan. The Strategic planning process involves certain topics and action steps. However, the process does not always be in one flow of direction. If any issues occur in the middle one step may require going back to the first step of the process. Each step of the strategic planning incurs huge costs and expenses for a proper implementation.

Strategic planning steps are:

Step 1: Review or develop Vision & Mission

Step 2: Business and operation analysis (SWOT Analysis etc)

Step 3: Develop and Select Strategic Options

Step 4: Establish Strategic Objectives

Step 5: Strategy Execution Plan

Step 6: Establish Resource Allocation

Step 7: Execution Review

Key Characteristics of the Budget Process:

Incorporates a long-term perspective

Establishes linkages to broad organizational goats

Focuses budget decisions on results and outcomes

Involves and promotes effective communication with stakeholders

Provides incentives to government management and employees

Strategic planning, budget formulation, budget execution, and planning evaluation-are interlinked programs designed for effective implementation and delivery. Strategic planning guides the direction the Department towards achieving its goals and mission. Budget structure shows the priorities in optimization of best available resources and staff.

The strategic planning budgeting team role includes:

Linking incentives to performance measures apart from those of meeting budget targets.

Allocating resources from the strategic point of view:

Linking budgets to corporate strategy:

Streamlining the budget process and reducing cycle time:

Introducing flexibility in budgets:

Linking cost management in the company to the budgeting process

Effective organizations develop budgets to support a strategic plan. Senior managers design a framework to express future organization's strategic objectives. The strategic planning budget enables strategic team members to determine which areas are profitable or unprofitable. To be financially and strategically sound, most of the organizations combine strategic, management, and tactical level plans in the budget building process. However, an effective integration of budgeting and strategic planning requires that restructuring of organizational sources. The responsibility of sound budget formulating and monitoring policies will be depends on the managers only.

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