Do the financial planning in order to achieve business goals

In order to achieve the financial goals financial planning is very important. Financial planning includes planning for short term and long term investment. Some companies avail the service of financial planning professionals in order to do financial planning for their business.

In order to achieve the financial goals financial planning is very important. Financial planning includes planning for short term and long term investment. Some companies avail the service of financial planning professionals in order to do financial planning for their business. While taking any decision for the long term investment they consult the financial planner so that they can achieve business objective and will not suffer from any financial loss.

There are number of the people who want to know why financial planning is necessary for their business. Finance is the blood of any business. It is impossible to achieve business objective without it so in order to run successful business financial planning is necessary. It includes decision where money to use and where to invest.

Time period for financial planning

The financial planning is different for different business. It can be done for short duration i.e. Investment of money for less than one year. In some business longer financial planning is done which is executed for five to ten years. Planner helps you to plan for two years also if the duration of any project is two year. It is best for you and your business to do financial planning and execute accordingly.

Why to do financial planning

There are thousands of reasons which clearly tell about the importance of the financial planning. There are many big organizations who hire financial planner in order to do financial planning for the business. Planner has skills and abilities to identify about the different risk factor and plan them properly in order to reduce them. Through proper financial planning any business can archives his business objective. Given below are some reasons

Best way to generate more income

Many types of financial institutions give large interest on the money deposited in the account. It is the best way to get additional income.

Inflation

It helps in the saving of money from being loss due to inflation. If proper financial planning is done then it is easy for any business to deal with inflation issues.

Creation of emergency cash reserve

If company do proper financial planning then it will be easy for the business to save them at the time of crises. Emergency can be arising at time so financial planning helps them to get emergency cash.

Saving of money

Through financial planning money can be saved and that can be used for long term projects. Many businesses do planning in order to generate cash for big projects. If you want to save more money and want to earn more profit then financial planning is very important.

More flexibility

If why financial planning is important is question in your mind then this reason help you to get the answer of your question. Through proper financial planning flexibility can be increased.

More liquidity

Proper financial planning is the only way through which more liquidity can be obtained. You only need to hire the best financial planner in order to i

Posted in Uncategorized | Tagged | Comments Off on Do the financial planning in order to achieve business goals

Thirteen Elements of Effective Planning

In our companies and organizations, effective planning is a social activity. Deciding on a strategic planning process as a group, rather than as an individual, adds even greater complexity to an already complex task. Collaborative and effective planning techniques require a combination of 13 essential elements to be successful.

All plans are not good plans. In fact,Guest Posting even good plans can fail. We cannot predict the future – we can only imagine it imperfectly. In our companies and organizations, effective planning is a social activity. Deciding on a strategic planning process as a group, rather than as an individual, adds even greater complexity to an already complex task. Collaborative and effective planning techniques, then, require 13 essential elements.

1. Effective and Strategic Planning Process

First, effective planning requires a process, and that strategic planning process should include the remaining 12 elements of good planning. In collaborative team planning, that process must be structured and disciplined in order to be efficient and thorough. Without a process, your planning techniques will be awkward, inefficient and often insufficient.

2. Effective Planning Techniques: An Envisioned Future / Objective

When we envision the future, we must describe it clearly and provide specific measurements in order to judge our success. To this end, the objective of our effective planning techniques is goal we envision attaining in the future. Objectives must be clear to all involved. They must also have a scope that is commensurate with the span of control of those involved with the effective planning process. An objective that is not achievable by those tasked with developing a plan is, obviously, doomed to failure. Objectives must also be measurable. Without measurements of success, there is no means of establishing whether or not the objective was achieved, and your strategic planning process will be flawed.

3. Dynamic, Adaptable Planning

In terms of effective planning, “dynamic” means that plans are adaptable, in two ways. First, the act of effective planning considers the current and predicted environment and adapts the plan accordingly. Second, in the strategic planning process, plans must be devised in such a way so that they are not overly detailed. Effective planning ensures that your plans can adapt to changes that occur while the plan is being executed.

4. Iterative Improvements

Effective planning at your organization will also be iterative. By “iterative,” we mean that a plan will improve continuously from one iteration, or version, to another before it is executed in the strategic planning process. The iterative nature of planning supports its adaptive or dynamic nature. Iteration can be sped up by an effective planning technique known as “Red Teaming.” In Red Teaming, a group of individuals outside the planning effort are invited to criticize the plan or expose its weaknesses, acting as a form of rapid iteration and improvement.

5. Effective Planning Requires that You Learn from Experience

A complex and rapidly changing environment demands the ability to rapidly learn from the changes in that environment. Even the most well-educated and trained organization will soon become obsolescent as changes in the environment eventually overwhelm it. Good organizational planning requires sophisticated and effective planning techniques that the organization learns continually, through interaction with its environment and the execution of its plans.

6. Means to Achieve / Course of Action

The central element of all effective planning techniques is the Course of Action (COA). These are the actual tasks that must be completed, whether in parallel, in series, or a combination of both, to achieve the goal. For the most part, in a strategic planning process, the Course of Action, for simple plans, is intuitive or even obvious. However, for most organizations, plans may require great detail. Therefore, an effective planning process must be flexible enough to handle both simple and detailed plans. Effective planning processes should have the ability to repeat the planning process at successively lower levels in the organization, while supporting the objectives of the overall plan.

7. Decentralized Effective Planning

Another effective planning technique is the decentralization of plans, closely related to the flexible and successively repeatable nature of the Course of Action. Effective planning teams should not plan beyond their scope or expertise. In other words, the executive team of a large corporation should not develop the details of a strategic planning process to replace a main server in their IT infrastructure. Such a task is both out of their scope and, most likely, their expertise.

8. Individual Accountability

The scope and detail of effective planning is concluded when each task within a Course of Action is assigned to a single individual, not a team, to complete. Without individual accountability to each task and each plan, there is a significant risk of miscommunication, misunderstanding, and ultimately, failure.

9. Effective Planning Techniques Support Initiative and Good Judgment

General George S. Patton said that plans “[…] should be made by those who are going to execute them.” Decentralization and accountability go far in supporting the success of effective planning techniques. However, when a strategic planning process is developed by the team responsible for accomplishing the plan’s objective, the overall quality and likelihood of creating a successful plan improves exponentially.

10. Consider Resources

Effective planning means not committing to or wasting resources unnecessarily. In a strategic planning process, planners must determine the appropriate targets or objectives and focus resources upon those objectives. Because resources are often limited, prioritizing and planning successive phases of implementation may be necessary.

11. Assess Risk: Leadership Responsibility

Resources are considered carefully at every level of effective planning. Furthermore, the assessment of objectives, threats and resources are critical steps in every strategic planning process that, when taken together, form the basic risk assessment for any plan. Without the necessary resources to either avoid or mitigate the threats to accomplishing an objective, the risks in undertaking that plan should be given due consideration by the leadership within the organization. Because risk is often necessary, the final decision to execute the plan is left to its leaders, not the planning team.

12. Participatory and Cognitively Diverse

Isolating effective planning in a single individual or a group of individuals without the benefit of field experience and a diversity of knowledge, skills, and abilities is a recipe for failure. The world we live in is increasingly complex. Problem-solving in our complex world requires teams of cognitively diverse individuals contributing their unique knowledge to form a combination of effective planning techniques. If effective planning is conducted by a single individual or by groups of people with similar knowledge, skills and abilities, the qualities necessary to solve complex problems and to create an innovative strategic planning process will be absent.

13. The Most Effective Plans are Simple

The more complex a plan, the more likely it will fail. As Statistical Process Control and Six Sigma methodologies instruct, the greater the number of steps in a process, the greater the potential for a defect. That is why it is critical that the effective planning process remains simple. Simplicity is not just about minimizing the number of tasks, it’s about making sure that each task is clearly defined through answering some simple questions: “who will do what and when.”

There is a paradox at work in effective planning. It is simply this: that our human tendency is to implement plans rigidly while the purpose of a plan, in light of the complexity and constant change in the world, is to define objectives and establish a point of departure to react to change. The paradox of the strategic planning process is that effective planning does not involve merely creating a list of sequenced tasks, but establishing a constantly evolving problem-solving process that adapts and thrives in the environment.

Posted in Uncategorized | Tagged , | Comments Off on Thirteen Elements of Effective Planning