Describe the relationship between financial planning and strategic planning. What steps are involved in each process? Who should be involved vs. who is responsible? Should financial planning come before strategic planning or vice versa? Why?

Question

Describe the relationship between financial planning and strategic planning

Strategic planning outlines what you plan to do whereas financial planning outlines financial resources to achieve these objectives.

Steps involved in strategic planning

• Determine your strategic position.
• Prioritize your objectives.
• Develop a strategic plan.
• Execute and manage your plan
• Review and revise the plan

Steps involved in financial planning

• Defining and agreeing your financial objectives and goals.
• Gathering your financial and personal information.
• Analyzing your financial and personal information.
• Development and presentation of the financial plan.
• Implementation and review of the financial plan.

The strategic panning process involve the senior managers of an organization and key employees ,who can actively contribute to the long term planning.

Strategic planning comes first compared to financial planning.

Step-by-step explanation

Strategic planning outlines what you plan to do whereas financial planning outlines financial resources to achieve these objectives.

Steps involved in strategic planning includes:

Determine your strategic position.

 Prioritize your objectives.

Develop a strategic plan.

Execute and manage your plan

Review and revise the plan

Steps involved in financial planning

Defining and agreeing your financial objectives and goals.

Gathering your financial and personal information.

Analyzing your financial and personal information.

Development and presentation of the financial plan.

Implementation and review of the financial plan.

The strategic panning process involve the senior managers of an organization and key employees ,who can actively contribute to the long term planning. Each management team must decide who should participate in the planning process.

Strategic planning comes first compared to financial planning.

A financial plan is a document containing person's current money situation and long term monetary goals , as well as strategies to achieve these goals.