Imagine if a relative or close friend asked you to plan the entirety of their wedding but then refused to share how much money they wanted to spend on it and what their priorities were. For the reception, would you book a high-end hotel or plan a backyard event? Would you book a photography studio for five figures or find a photography student who is working on their portfolio? The inevitable disaster this situation would create can similarly be experienced by managers who lack guidance and direction. Negative outcomes are more likely to be avoided when managers rely on predictive tools, such as strategic planning, budgeting, and forecasting. For example, a reasonable budget can enable an organization to allocate resources, provide a plan to achieve goals and objectives, and help measure and communicate organizational performance, thereby enabling managers to make effective decisions. In this Discussion, you will consider how strategic planning, budgeting, and forecasting impact an organization and its decision making.
Consider the organization where you work or an organization with which you are familiar. Focus specifically on the importance of the budgeting process, forecasting, and strategic planning for informing stakeholders about how the organization operates and how these tools are used in decision making. (Note: If you are not in the position to be involved in budgeting processes, either interview someone in your organization or a professional outside your organization who can provide you with this information. Be sure to identify the position held by this person in your post.)
Post an analysis of the role of strategic planning, budgeting, and forecasting for an organization, to include the following:
Provide an overview of the organization and your position within your relationship with the organization.
Analyze how strategic planning, budgeting, and forecasting processes impact this organization’s decision making. Be sure to include at least one example to support your analysis.
Examine how you, as a manager or future manager, could utilize a budget to measure performance and to assist in effective decision making.