Strategic Planning and Financial Management
Strategic Planning and Financial Management
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CHAPTER 15
- What is performance budgeting?
- What are the steps that make up performance budgeting?
- What are some key performance areas for a nursing unit?
- What are some issues to be considered in determining how much of each operating budget line item should be devoted to each performance area?
- Organizations tend to have many goals; however, the budget process usually focuses on accomplishment of only one or two goals, such as not overspending. How does performance budgeting bring performance with respect to other goals under scrutiny?
NURS 6123 – “Strategic Planning and Financial Management” Assignment
CHAPTER 16
- Discuss the concept of goal congruence.
- What are some negative consequences of unrealistic budgeted expectations?
- How does communication aid the control process?
- What is meant by “favorable” or “unfavorable” variance?
- What are some possible causes of variances?
- What is the essence of flexible budget variance analysis?
- Does flexible budget variance analysis explain the cause of variances observed?
8.What is control?
9.What are some uses for budgets for control?
NURS 6123 – “Strategic Planning and Financial Management” Assignment
10.Why is variance analysis performed?
CHAPTER 17
- Why is interpretation of variances important?
- Does the acuity variance represent an additional amount of variance?
- Why are variable costs critical to flexible budget variance analysis?
- Should all variances over $1,000 be investigated? Explain
CHAPTER 15
- What is performance budgeting?
- What are the steps that make up performance budgeting?
- What are some key performance areas for a nursing unit?
- What are some issues to be considered in determining how much of each operating budget line item should be devoted to each performance area?
- Organizations tend to have many goals; however, the budget process usually focuses on accomplishment of only one or two goals, such as not overspending. How does performance budgeting bring performance with respect to other goals under scrutiny?
NURS 6123 – “Strategic Planning and Financial Management” Assignment
CHAPTER 16
- Discuss the concept of goal congruence.
- What are some negative consequences of unrealistic budgeted expectations?
- How does communication aid the control process?
- What is meant by “favorable” or “unfavorable” variance?
- What are some possible causes of variances?
- What is the essence of flexible budget variance analysis?
- Does flexible budget variance analysis explain the cause of variances observed?
8.What is control?
9.What are some uses for budgets for control?
NURS 6123 – “Strategic Planning and Financial Management” Assignment
10.Why is variance analysis performed?
CHAPTER 17
- Why is interpretation of variances important?
- Does the acuity variance represent an additional amount of variance?
- Why are variable costs critical to flexible budget variance analysis?
- Should all variances over $1,000 be investigated? Explain
Financial Strategic Planning
Your strategic and financial strategies have a give-and-take relationship. Financial planning is required to meet your strategic objectives, but your financial tactics are also influenced by your strategic objectives. If you own one store and want to establish three more in the next five years, you’ll need money to support the new enterprises, which will generate more revenue that can be used to fund future expansion.
Developing a financial strategy that aligns with your company’s overall strategic plan, then reevaluating and changing as circumstances change, is the foundation of strategic financial management. If you don’t accomplish your specified goals and milestones, consider whether your firm isn’t running efficiently or whether the goals were set too high.
Setting Objectives
Realistic and quantifiable strategic planning goals are the most effective. Rather than wishful thinking, they should be founded on genuine patterns and facts. By drawing on prior accounting data and incorporating research and estimates for future planning, financial planning offers professional tools and information to this process.
Long-term objectives.
Setting long-term goals, according to Focused Momentum, is critical for providing direction for short-term strategic planning. Long-term objectives should be founded on your company’s overall vision of who you are and what you want to accomplish. Long-term goals are the most difficult to plan for because they may be too far in the future for you to imagine practical financial plans.
Goals for the medium future.
These help to bridge the gap between long-term goals’ lack of detail and the intricacy associated with short-term goals. Medium-term targets allow you to evaluate your progress after a period of time has passed and, if necessary, reassess some of your strategic financial planning objectives in light of how real-life events are unfolding.
Short-term objectives.
These have the potential to be extremely effective when it comes to tying strategic and financial planning together. You may tie your company’s financial estimates for the next six months to its financial behavior over the previous six months in a relevant way. This becomes more difficult if you’re projecting for a completely new business operation, such as adding a wholesale division to a retail store.
Goals are being reevaluated
Your company’s strategic financial management will almost certainly evolve as a result of long-term planning. It’s important to look at the strategic variance, or the particular amount you misjudged, if your outcomes fall short of or surpass your targets by a substantial amount. A little strategic variance is normal and even expected because you don’t have a crystal ball to see into the future, according to the Corporate Finance Institute, but a significant strategic variance indicates you should reassess the planning process.
If there is a significant difference, determine whether it is due to erroneous assumptions and accounting or unforeseen occurrences. If it’s the former, you can examine your assumptions or data more closely and then recalculate in light of what you’ve learned. If the discrepancy is due to the latter, you must still recalculate to account for the new circumstances.
