Relationship between strategic and financial planning

Assignment Help Finance Basics

Reference no: EM131313353

The following excerpt is from "Integrating Strategic and Financial Planning" by Lee Ann Runy (2005), which appeared on hospitalconnect.com (www.hhnmag.com/hhnmag app/hospitalconnect/search/article.jsp? dcrpath=HHNMAG/PubsNewsArticle/data/0506HHN FEA Gatefold &domain=HHNMAG):

Integrating strategic and financial planning is the best way for health care organizations to ensure that they are spending money wisely.

Too often, projects get approved only to be shelved because the money isn't available. And, hospitals need an accurate vision of their community and the needs and wants of their customers before embarking on costly expansions and new services. It is a dynamic process: Just as budgets must be updated yearly, strategic plans must be reassessed to ensure that the organization's assumptions and projections are on track.

It is important that plans remain up-to-date or the organization risks costly, unnecessary expenditures or may miss out on a good opportunity. A thorough planning process incorporates strategic planning, financial and operational planning and capital allocation.

"A financial plan without strategy isn't much of a plan," says Blaine O'Connell, chief financial officer at Froedert Hospital in Milwaukee. "A strategic plan without financial backing isn't much of a strategy.

a. What is the relationship between strategic planning and financial planning?

b. What does financial planning involve?

c. What do you think "operational planning" means in the excerpt?

d. What do you think "capital allocation" means in the excerpt?

e. Explain why you agree or disagree with the statement in the excerpt: "A financial plan without strategy isn't much of a plan.

Reference no: EM131313353

Questions Cloud

How does a strategic plan relate to a companys objectives : How does a "strategic plan" relate to a company's objectives?- Why are strategic plans considered a tool and not a solution?

What is the best order quantity : Stopping the process would be disastrous, so the plant manager has set a 99% service level on the reorder point - What is the best order quantity and what is the total cost at this reorder point?

Calculate the average grade and the highest grade : Design and implement a class that allows a teacher to track the grades in a single course. Include methods that calculate the average grade, the highest grade, and the lowest grade. Write a program to test your class implementation.

Promised to a mayor customer is running late : Preparation of the company product that was promised to a mayor customer is running late, and there pressure on the production team to deliver the product. The director of production is eventually told by the company president to deliver or "else"..

Relationship between strategic and financial planning : What is the relationship between strategic planning and financial planning?- What does financial planning involve?

Discuss market system and the need for ethics in business : Discuss the market system and the need for ethics in business and distinguish it from the law and concepts of virtue and morality. Discuss the ideas of character ethic, female ethic, human rights, and ethical action.

Perform the following actions to test your application : Press the Exit button. The Exit button doesn't stop the application but instead deletes all tests from outForChecking and inserts them in submittedTests and displays a list of all the submitted tests. Use the Collection class from the .NET Framewo..

Can you fill up the knapsack completely : Find at least two new coin denominations that make the greedy algorithm for coin changing shown in the chapter produce suboptimal results.

What is the relationship between eva and economic profit : What is EVA and how does it take into account the cost of capital?- What is the relationship between EVA and economic profit?

User Account

All Pages