Paper Outlines Steps in Converting Strategic Planning to Shareholder Value

Firms can effectively adapt traditional budgeting, planning and forecasting processes to become more strategic tools for the business, according to a newly-published study issued by Wolters Kluwer Financial Services.

The white paper, entitled ‘Strategic Budgeting and Planning: How to Turn Mandatory Finance and Risk Disclosures into Strategic Tools’, outlines how by quantifying the effects these functions have upon the business, firms can have access to a feedback loop that provides management with the information it needs to make forward-looking decisions.

The paper also addresses the following issues:

• The traditional budget process and its impact on shareholder value.
• The move towards a more strategic budgeting process within financial institutions (FIs).
• The drive by regulators to push FIs toward a more comprehensive and auditable form of strategic planning.
• Identifying the seven key elements to implement a successful strategic plan.
• Best practices and forward-looking processes that will take FIs to the next level of decision-making.

“The future lies in expanding a firm’s view into all of its budgeting, planning and forecasting processes to ensure that the strategies it enforces deliver the most shareholder value,” said Nancy Masschelein, vice president, market management, finance and risk at Wolters Kluwer FS.

“A more forward-looking and granular approach to information gathering outlined in this new paper, when combined with necessary controls, can help financial organisations ensure strategic decisions that deliver optimum return on equity,” added Jeroen Van Doorsselaere, director, business development, global finance and performance for the company.

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