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ABM - BF12 IIIc D 10

The document outlines the steps in the financial planning process. It begins by defining planning as the act of making a plan to achieve or do something. It then discusses the key steps as: 1) Setting goals or objectives in the short, medium, and long term. 2) Identifying required resources. 3) Identifying tasks to achieve goals. 4) Establishing accountability and timelines. 5) Establishing an evaluation system. 6) Determining contingency plans in case assumptions do not become realities. The overall process involves setting a vision and mission, and then taking steps to achieve objectives through proper planning, resource allocation, and performance management.

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192 views25 pages

ABM - BF12 IIIc D 10

The document outlines the steps in the financial planning process. It begins by defining planning as the act of making a plan to achieve or do something. It then discusses the key steps as: 1) Setting goals or objectives in the short, medium, and long term. 2) Identifying required resources. 3) Identifying tasks to achieve goals. 4) Establishing accountability and timelines. 5) Establishing an evaluation system. 6) Determining contingency plans in case assumptions do not become realities. The overall process involves setting a vision and mission, and then taking steps to achieve objectives through proper planning, resource allocation, and performance management.

Uploaded by

iancris267
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Topic: STEPS IN FINANCIAL

PLANNING PROCESS
Objectives:
At the end of the lesson, the learners should be
able to:
a. Define what is planning?
b. Identify the steps in the Financial Planning process.
WHAT IS
PLANNING?
PLANNING
 THE ACT OR
PROCESS OF MAKING
A PLAN TO ACHIEVE
OR DO SOMETHING.
TWO MANAGEMENT FUNCTIONS

1. PLANNING

2. CONTROLLING

BOTH REINFORCE EACH OTHER,


AND BOTH ARE VERY IMPORTANT
FOR THE SUCCESS OF AN
ORGANIZATION
WHAT IS MANAGEMENT
PLANNING?

IS ABOUT SETTING


THE GOALS OF THE
ORGANIZATION AND
IDENTIFYING WAYS TO
ACHIEVE THEM.
KINDS OF PLANNING

1. LONG-TERM PLANS
2. SHORT-TERM PLANS
LONG-TERM PLANS

- ARE REFLECTED IN A
COMPANY’S BUSINESS
STRATEGY.
- RESOURCES MUST BE
INDENTIFIED
EXAMPLES OF
RESOURCES
1. MANPOWER RESOURCES
2. PRODUCTION CAPACITY
3. FINANCIAL RESOURCES
Once a plan is set,
it has to be
quantified. Why?
QUANTIFIED PLANS ARE IN
THE FORMS OF:

1.BUDGETS
2.PROJECTED FINANCIAL
STATEMENTS
-THESE ARE COMPARED WITH THE ACTUAL
PERFORMANCE.
CONTROLLING
TO BE EFFECTIVE:

- MUST INCLUDE REWARD SYSTEM


FOR THOSE WHO DELIVER AND A
PENALTY FOR THOSE WHO DO NOT
DELIVER WHOSE REASONS FOR
FAILING TO MEET OBJECTIVES ARE
WITHIN THEIR CONTROL.
STEPS IN
PLANNING
STEPS IN PLANNING

1. Set goals or objectives

a. Short-term
b. Medium-term
c. Long-term
STEPS IN PLANNING

a. Short-term (for a year)


b. Medium-term (1-3 years)
c. Long-term (5-10 years or
even longer)
STEPS IN PLANNING

Vision
Describes what top
managers want their
company to become.
STEPS IN PLANNING

Mission
Describes how the company
will achieve its vision and
makes the purpose and
objectives of the company
clear.
STEPS IN PLANNING
DBP’s mission statement:
 “To raise the level of competitiveness of the
economy for sustainable growth.

 To support infrastructure development,


responsible entrepreneurship, efficient social
services, and protection of the environment.

 To promote and maintain the highest standards


of service and corporate governance among its
customer constituencies.
STEPS IN PLANNING
2. IDENTIFY RESOURCES

 PRODUCTION CAPACITY

HUMAN RESOURCES ( who will


man the operations and financial
resources)
STEPS IN PLANNING
3. IDENTIFY GOAL-RELATED TASKS
 Management must figure out how to achieve an
objective.

Example:
If LINHS target for next year is to increase enrollment
by 15%, tasks should be considered to achieve are:
- Rigid promotion campaign
- Be a competitive school
- Increase passing rate for NCII.
STEPS IN PLANNING
4. ESTABLISH RESPONSIBILITY
CENTERS FOR ACCOUNTABILITY
AND TIMELINE.
 Identify which department should
be held accountable for the task.
STEPS IN PLANNING
4. ESTABLISH RESPONSIBILITY CENTERS FOR ACCOUNTABILITY AND TIMELINE.

Sales and
Production Sales and
Marketing
Department Marketing
Department Department

Increase
Sales by 15%

Human
Credit Resource
Committee Department
STEPS IN PLANNING
5. ESTABLISH AN EVALUATION
SYSTEM FOR MONITORING AND
CONTROLLING.

Management must establish a


mechanism which will allow plans to
be monitored.
STEPS IN PLANNING
6. DETERMINE CONTINGENCY
PLANS.

 Budgets and projected Financial


Statements are anchored on
assumptions. If these assumptions
do not become realities,
management must have alternative
plans to minimize the adverse
effects on the company.
Thank You for your
participation.

God bless us all.

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