This is a combination of budgeting and strategic planning presented at University of Mindanao..this is a combination of modified works and additional inputs made...Hope this can help you..

2. OBJECTIVES:
Strategic Plan
Strategic Implementation
Budget
Exercises

3. STRATEGY-DEFINED
Strategy can be defined as the determination of the
basic long-term goals and objectives of an
organization, and the adoption of courses of action
and the allocation of resources necessary for carrying
out these goals.

4. What is Strategic Planning?
• Process to establish priorities on what you will
accomplish in the future
• Forces you to make choices on what you will do
and what you will not do
•Broad outline on where resources will get allocated

5. Why do Strategic Planning?
• If you fail to plan, then you
plan to fail – be proactive about
the future
• Strategic planning improves
performance
•Communicate to everyone what
is most important

6. Strategic Planning Model
A B C D E
Matt H. Evans,
matt@exinfm.com
• Environmental Scan
Assessment
• Background
Information
• SituationalAnalysis
• SWOT – Strength’s,
Weaknesses,
Opportunities,
Threats
• Situation – Past,
Present and Future
• Significant Issues
• Align / Fit with
Capabilities
• Mission & Vision
• Values / Guiding
Principles
• Major Goals
• Specific Objectives
• Performance
Measurement
• Targets / Standards of
Performance
• Initiatives and
Projects
Basis Components
• Performance
Management
• Review Progress –
Balanced Scorecard
• Take Corrective
Actions
Details Evaluate
Where we are Where we want to be How we will do it How are we doing
• Gaps • Action Plans • Feedback upstream –
revise plans

7. Assessment
Assessment Basis Components Details Evaluate

8. Assessment Model: S W O T
External Assessment: Marketplace,
competitor’s, social trends, technology,
regulatory environment, economic cycles .
Internal Assessment: Organizational
assets, resources, people, culture,
systems, partnerships, suppliers, . . .
• Easy to Understand
• Apply at any
organizational level
• Needs to be
Analytical and
Specific
• Be honest about your
weaknesses
Good Points Possible Pitfalls
SWOT SWOT
Assessment

9. Barangay SWOT
 Strengths
 Strong leadership & cooperative community members
 Supportive government financial aid
 Weaknesses
 Uncertain objectives
 Weak system or leadership style
 Opportunities
 City government emphasis on fighting crime
 Implementation of systematic garbage disposal
 Threats
 Crime and corruption
 Weak budget system
Assessment

10. Basis
Assessment Basis Components Details Evaluate

11. Why create a baseline?
Baseline
• Puts everything about the organization into a
single context for comparability and planning
• Describe the organization as well as the
overall environment
• Include information about relationships –
customers, suppliers, partners, . . .
•Organizational Profile

12. Organizational Profile
• Products and Services
•Organizational Culture – Barriers, Leadership,
Communication, Cohesiveness . . . .
• Workforce Productivity – Skill levels, diversity,
contractor’s, aging workforce, . . .
• Infrastructure – Systems, technology, facilities, . .
• Regulatory –Safety, Environmental, Govt. Laws. . .
Baseline

13. Barangay Problems & Issues
 Social
 Drug Addiction
 Gambling
 Illegal Activities That Affects Our Natural Resources
 Drunkenness
 Petty Crimes
 Economic
 Unemployment
 Landless
 Squatters
Baseline

14. Barangay Problems & Issues
 Employment Record
 Labor Force – 50%
 Employment Rate – 87%
 Average Family Income – Php 3 000.00/mo.
 Average Family Expenditures – Php 3 000.00/mo.
 Infrastructure
 City Barangay Roads Maintenance Needs Asphalt Overlaying
 Administration
 Improvement of Barangay Hall
 Covered Court for Social Activities Held Outdoor
 Improvement of our Mangrove Plantation Project to Attract More Tourists
as Well as Domestic.
Baseline

15. Components
Assessment Basis Components Details Evaluate

16. Strategic Plan / Down to
Action
Matt H. Evans,
matt@exinfm.com
Mission
Vision
Goals
Objectives
Measures
Why we exist
What we want to be
Indicators and
Monitors of success
Desired level of
performance and
timelines
Planned Actions to
Achieve Objectives
Specific outcomes expressed
in measurable terms (NOT
activities)
Strategic Plan
Action Plans
Evaluate Progress
Targets
Initiatives
What we must achieve to be successful
Components

17. Mission Statement
• Captures the essence of why the organization
exists – Who we are, what we do
• Core values of the organization
• Should be brief and to the point
• Easy to understand
Components

18. Sample Mission Statement:
 The most endearing brand...
that has ever been...
 We will lead in product taste at all
times...
 Happiness in every moment...
 By year 2020, with over 4,000 stores
worldwide,
 Jollibee is truly a GLOBAL BRAND.
(and the Filipino will be admired
worldwide)
Components

19. Barangay Mission Statements
100% Crime free community
Provide family oriented services
Proper waste disposal and sanitary
drainage
Aid in the transformation of a livable
and healthy community
Components

20. Vision
• How the organization wants to be perceived in
the future – what success looks like
• An expression of the desired end state
• Challenges everyone to reach for something
significant – inspires a compelling future
• Provides a long-term focus for the entire
organization
Components

21. Sample Vision Statement
To serve great tasting
food, bringing the joy
of eating to everyone.
Components

22. Barangay Vision Statement
A peaceful community and 100%
compliance of citizen to city
government policies and regulations.
Components

23. Goals
• Describes a future end-state – desired outcome
that is supportive of the mission and vision.
• Shapes the way ahead in actionable terms.
•Puts strategic focus into the organization.
Components

24. Objectives
Components

25. Barangay Objectives
 Distribute relief goods on 120 families affected by the
calamity
 3 days general cleaning of clogged sewage and drainage
systems.
 Painting of barangay hall within the allocated 20%
annual budget CY 2012
 Restoration of Barangay court to promote sports
oriented teens
 Serve 250 boys in “Operation Tuli”
Components

26. Matt H. Evans,
matt@exinfm.com
Assessment Basis Components Details Evaluate
Details

27. What are Action Plans?
Objectives
Initiatives
Action Plans
• Action Plans are geared toward operations,
procedures, and processes
Details

28. ROLES OF
STRATEGIC PLAN
Provides top- down guidance
Alignment of internal actions with strategy
Consistency
Powerful lever
Details

29. Who takes the
lead?
Employees/Barangay
Brgy.
Captain
Brgy.
Kagawads

30. Targets
 For each measurement, you should have at least
one target
 Targets put focus on your strategy
 When you reach your targets, you have successfully
executed your strategy
Details

31. 2012 Barangay Target
 120 families had properly followed the proper
segregation of waste to promote clean community and
avoid drainage systems clogging and possible flood
during the rainy seasons
Details

32. Assessment Basis Components Details Evaluate
Evaluate

33. Link Budgets to
Strategic Plan
 The world’s best Strategic Plan will fail if it
is not adequately resourced through the
budgeting process.
 Strategic Plans cannot succeed without people,
time, money, and other key resources
 Aligning resources validates that initiatives and
action plans comprising the strategic plan support
the strategic objectives
Evaluate

34. What Resources?
How to Link?
Every Action Plan should identify the following:
•The people resources needed to succeed
•The time resources needed to succeed
•The money resources needed to succeed
•The physical resources (facilities,
technology, etc.) needed to succeed
Evaluate

35. Barangay Monitoring &
Evaluation
 Monitor percentage of gang and juvenile delinquency
related incidents resulting to violence within the
vicinity in a week.
 Reporting of crimes and petty thefts connected with
the number of “tanod routing” in the area and the
time when incidents frequently happen.
 Monthly meeting of barangay officials for updates on
implementation and execution of action plans.
 Updating of records every time the barangay has
incurred expenses.
Evaluate

36. OBJECTIVES:
Strategic Plan
Strategic Implementation
Budget
Exercises

37. KNOWING THE NUMBERS
Analyzing Budgets

39. What is a Budget?
 It is a political document.
 It is a financial planning tool.
 It is not etched in stone.
We must do more than understand
the budget – we must organize and
build power to win our demands.

40. Why budget?
Budgeting is the key to financial management.
enables you to monitor your income and
expenditure and identify any problems.
is a basis for financial accountability and
transparency.
raise money from donors unless you have a
budget.

41. When do you do the budgeting?
 After strategic planning and action planning
 When need to work out how much it will cost to run a
particular project.
 When you want to ask a donor to support a particular
aspect of your work.

42. BASIC PRINCIPLES
A good practice in budgeting involves :
clarity of purpose
detailed planning
considerable thought.

43. Issues to address in Budgeting:
 Who should be involved in budgeting?
o Barangay officials & constituents
 The operational plans
o Projects, administrative expenses
 Estimating costs
o Information comes from previous projects & expenses
 Sources of finance.
o Government funding
o Donation

44. Definition
It is a list of all
planned
expenses
&
revenues

45. The process of making
the list is BUDGETING

46. The Planning Cycle Prepare your
operational plans.
Assess the
resources you
need
Implement plans &
monitor impact
Draw a budget
To cover the
work.
Review what
You have done
In the past
Review &
Clarify your
Vision & Mission

47. COSTS CATEGORIES:
 Operational costs – the direct costs of doing the work
e.g. the cost of hiring a venue, or of printing a publication, or of
travelling to the sites where fieldwork needs to take place. Here
you would include materials, equipment, transport and services.
 Administrative /Organisational costs (also called core
costs) – the costs of your organisational base, including
management, administration, governance.
 Personnel costs

48. COSTS CATEGORIES:
 Capital costs – these are costs for large
“investments” which, while they may be necessary
because of a project or projects.
Ex. vehicles and equipment.

49. Sources of Budget:
Promised donations
Probable donations
Income generated from sales
Income generated from services
Permit Fees
Special events
Investments

50. Sample barangay projects
 Botika ng Barangay
 Bagsakan Barangay “meat & vegetable market”
 Linis Barangay project
 Reconstruction or Repainting of Brgy Hall
 Barangay Mini Library Project
 Concrete Pathwalk Project
 Develop health-related brochures for distribution to
agencies, patients
 Conduct research on the health risks of body alteration
(tattooing or piercing) and make a presentation to at risk
teens in a local school.

51. Sample barangay projects
 Health promotion and disease prevention activities such as
giving short presentations in
schools, senior centers, and churches.
 Promoting health literacy.
 Make presentations at places such as youth rehabilitation
and training facilities; county
juvenile detention centers
 Working with adolescents and youth to increase physical
activity.
 Sports clinics.
 Childhood Obesity awareness and screening events.

53. An operating budget
A capital budget
A cash budget

54. The operating budget
An operating budget consists of two
parts:
The revenue budget
The expense budget

55. The revenue budget
 The revenue budget, which is a projection of
estimated income for the coming year.

56. The expense budget
 The expense budget, which consists of
all anticipated costs of operating the
business and conducting the projected
level of business.

57. Elements
 Salaries & wages
 Payroll taxes
 Insurance
 Training & seminars
 Publications
 Memberships
 Fringe benefits
 Medical
 Others
 Depreciation
 Amortization
 Travel
 Supplies
 Taxes & licenses
 Rent
 Miscellaneous/Others

58. DIFFERENT KINDS OF BUDGETS
Working budget – what you realistically
expect to generate or raise, and how this will
be spent .

59. What if BUDGETS:
 A survival budget. This is the minimum required in
order for the organisation or project to survive and do
useful work.
 A guaranteed budget. This is based on the income
guaranteed at the time the budget is planned. Usually the
“guarantees” are in the form of promises from donors.
 An optimal budget. This covers what you would like
to do if you can raise additional money.

60. DIFFERENT BUDGETING TECHNIQUES
 Incremental budgets – percentage increase
from the previous years.
 Zero based budgets - past figures are not used as the
starting point. The budgeting process starts from “scratch”
with the proposed activities for the year.

62. Timeframe
Annually, quarterly, monthly
Project based – whole
duration of the project

63. Working the Budget
 List your likely sources of income or
revenue. Categorize them.
 List the items on which you spend money.
 Estimate the cost monthly and then the
annual costs.

64. Working the Budget
 Prepare your budget format.
 Do your addition.
 Add in notes to explain items that
may not be clear.
 Get feedback on your budget.
 Finalize your budget.

65. You and your budget
Effectiveness
Efficiency

67. Budget Variance
Variances against budget
Variances against history
(usually prior year)

68. Periodic
Reports

70. Corrective Actions:
With the use of the Strategic
Plan coupled with proper
Budgeting and
Implementation, surely you
will achieve your desired
end-result.

71. OBJECTIVES:
Strategic Plan
Strategic Implementation
Budget
Exercises

72. Exercise
72

73. 73