Thinking Ahead: Developing a Financial Strategy

Strategic financial planning in public service organisations must now be reinvigorated. With the financial crisis of 2008 and its aftermath, many of the assumptions underpinning financial strategies were found to be untenable. The immediate pressure on budgets has joined with a stress on protecting frontline services to reduce planning horizons and undermine commitments to strategic planning. These short-term needs cannot be ignored, but they should not distract from creating a long-term vision embodied in a financial strategy. In this way public service organisations recapture the benefits of planning ahead.

This guidance makes the case for strategic financial planning by revealing the specific benefits it brings. The links with broader corporate planning as well as short budget processes are also clarified. In this way finance professionals are supported in their efforts to push out their financial planning horizon to the medium or longer term. At its core, the guidance examines how scenario building allows public service organisations of all kinds to confront the uncertain environment in which they now work. Moving beyond that, it explains how to develop a sound financial strategy and clarifies the tasks of all those who must work on making it a success. Since throughout the emphasis is on principles rather than sector or role specific regulation, it should appeal to a wide readership of those wanting to think ahead.

This publication is available as a bookmarked PDF only.