Strategic planning in financial management for decision making

Abstract

The uncertainty over the consequences that could bring the global financial crisis and its impact on the economies of countries in the region, grows on a daily basis. As we have seen, it is important to be prepared to face those adverse situations in an efficient and strategic way. Also, a proper planning which reduce that vagueness to make sure we perceive market and competition risks whenever a decision has to be made.

However, high levels of uncertainty of our present situation in the global, regional and local levels lead to the planning of activities that require a greater level of revision and prospection in the shortest time possible. Some companies, for example, look for a way they can predict their results in business based on “projection exercises” done trimestrally.

This way, the capacity of having a strategic planning in a medium and long term, considering the actual business panorama, is reduced to the availability of those tools with added value which help us have a greater control to those variables which finally affect the overall performance. Then, it is a priority to improve the way the management organizations work and the tools and ways that will lead us to this purpose. Always in line to what to what we are pursuing to achieve.

This article makes a reflection about the benefits on how the f inancial management can work in our changing and volatile atmosphere. The “criteria flexibility” becomes one of the most important elements in firms. Given this scenario, the financial theory gives the conceptual framework for the transformation of a financial model that is compatible with that strategic planning always being having real options. This implies a process of redirection in the work of the accountant, which was considered only a person who processed the information, to a person, who nowadays, has a fundamental role in the accomplishment of those strategic objectives in the organization.