Financial Planning, Management and Decision Making On Project and Corporate Levels
Every sound decision-making process within an organization requires detailed information to eliminate any elements that might result in losses. At the very heart of a company’s success is its strategic planning and finances. Management teams depend on the financial muscle of an organization to thrive, but the strategic plan is more essential in creating a clear roadmap for operationalization of the goals of an organization. The strategic planning element is an essential aspect of decision-making owing to the fact that it depends on analytical models to create a realistic view of a firm (Blank, 2013). The financial plan is another crucial aspect of any organization when it comes to decision-making. Fundamentally, the financial metrics provide a suitable tool for evaluating the performance of an organization (Bierman and Smidt, 2003).
A sound decision has to dwell on proper and detailed information including financial data. The execution phase has been found to be the hardest for most organizations. The introduction of the balanced scorecard has been instrumental in revolutionizing the financial planning arm of organizations (Ahn, 2001). The advantage that the balanced scorecard introduces is that an organization is able to link its performance to its strategic financial goals. This has proved vital time and again by providing timely information that can be utilized by the organization to arrive at proper decisions. Proper financial plans create an environment where an organization is able to sustainable compete while maximizing its value (Kono and Barnes, 2010). Financial projections have been found to establish a platform where an organization can monitor its finances. This capacity is essential in decision-making as it allows for the organization to strengthen its competency and capability.
References
Ahn, H. (2001). Applying the balanced scorecard concept: an experience report. Long range planning, 34(4), 441-461.
Bierman, H., & Smidt, S. (2003). Financial management for decision making. Washington, D.C: Beard Books.
Blank, S. (2013). Why the lean start-up changes everything. Harvard business review, 91(5), 63-72.
Kono, P. M., & Barnes, B. (2010). The Role of Finance in the Strategic-Planning and Decision-Making Process. Graziadio Business Report, 13(1).
