ABSTRACT
This chapter provides an integrated approach to planning and implementing sound financial strategies. It considers the relationship between the budget cycle and the strategic planning cycle, the preparation of budgets and business cases as well as methods of calculating expenditure in order to determine where efficiencies are being met or need attention, which services should be continued or retired. It provides examples of financial models and processes which can be used to ensure that programmes or activities are managed in a financially sustainable manner as well as providing inputs into performance management and measurement. These include:
• Developing a business case – provides justification for the approval of a new initiative which might include the introduction of a new technology, service, programme or activity;
• Productivity assessment – identifies differing levels of productivity and efficiencies in programmes or activities in order to determine where attention should be placed in making services more efficient as part of ensuring sustainability in service delivery;
74 M a n a g i n g I n f o r m a t i o n S e r v i c e s
When any new major initiative (programme, system, product or service) is proposed it is most likely that a business case will need to be prepared in order to ensure that:
• Correct problem definition has taken place, that alternative solutions have been considered and that the proposed initiative presents the best business solution to the problem at hand;
Figure 5.1 An integrated finance model
75En su r i ng Va l u e f o r Money and Enab l i ng a Co s t - Su s t a i n ab l e F u t u r e
their capabilities, governance, financial viability and sustainability.
