02 — Capability · BC-220.10
Budgeting & Long-Range Planning
Set the financial targets for the year and the horizon beyond it, allocate resources against them, and get the organization to commit to the result.
- Annual Operating Plan
- Strategic Financial Plan
In scope
- Multi-year financial plan aligned to strategy
- Annual budget build and approval
- Target setting and allocation to business units
Out of scope
- The corporate strategy the plan expresses (see BC-110)
Realized by · 2
Used in · 1
Build it · 0
- Nothing in the library points here yet.
Decomposes into · 4
- BC-220.10.10Long-Range PlanningModel the financial shape of the enterprise three to five years out under the strategy's assumptions, so near-term choices are tested against the destination.
- BC-220.10.20Annual Budget DevelopmentBuild the operating budget from the bottom up and the top down, reconcile the two, and land a version leadership approves and owners accept.
- BC-220.10.30Target Setting & AllocationTranslate enterprise targets into unit-level revenue, cost and headcount envelopes that managers are measured against.
- BC-220.10.40Capital BudgetingDecide how much capital spend the year can carry and which categories it goes to, before individual projects compete for it.