Change can be hampered by the inability of a company to implement its strategy or strategies. A company finds itself unable to properly implement strategy due to poor financial planning which involves the following tasks:
Assess the business environment
Confirm the business vision and objectives
Identify the types of resources needed to achieve these objectives
Quantify the number of resources (labor, equipment, materials)
Calculate the total cost of each type of resource
Summarize the costs to create a budget
Identify any risks and issues with the budget set
Performing Financial Planning is critical to the success of any organization. It provides the Business Plan with rigor, by confirming that the objectives set are achievable from a financial point of view. It also helps the CEO to set financial targets for the organization, and reward staff for meeting objectives within the budget set.
How is financial planning accomplished where you work? Is it effective? Why or why not?
Please respond in a minimum of 225 words.
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