Strategic Planning and Budgeting: A Single Integrated Process with Ex Ante and Ex Post Alignments
Advances in Management Accounting
ISBN: 978-1-83753-917-8, eISBN: 978-1-83753-916-1
Publication date: 24 October 2023
Abstract
The purpose of this explanatory research was to understand how firms align strategic planning and budgeting both ex ante and ex post. After the literature review indicated that there was a shortcoming in explaining how the alignment was done, we interviewed management accountants at 20 large, profitable, stock-market listed firms with head offices in the Toronto area of Canada. To understand practice through interviews, we used qualitative, multi-case field research to address our research question, how do firms achieve alignment between their strategic plans and budgets, both ex ante and ex post? Our findings and contribution were that, rather than multiple processes (strategy, strategic planning, budgeting, and forecasting), strategic planning and budgeting are part of a single process. Alignment of strategic planning and budgeting is undertaken prior to the beginning of the fiscal year (ex ante) and during the fiscal year (ex post). Both provide opportunities to change ineffective strategies, strategic plans, and actions to minimize financial harm. Ex ante and ex post alignments enable the accomplishment of firms’ financial objectives through explicit and verifiable decisions. With forecasting heretofore being an unclear and ambiguous subprocess, this chapter has made it transparent and manageable in assisting with accomplishing the strategy, strategic plan, and budget.
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Acknowledgements
Acknowledgments
The authors thank the reviewers and editor for their beyond expected insightful and constructive contributions to this chapter. They also thank Diana Sheikham for her outstanding research assistance. Of course, the authors retain responsibility for all errors and shortcomings.
Citation
Spraakman, G. and O'Grady, W. (2023), "Strategic Planning and Budgeting: A Single Integrated Process with Ex Ante and Ex Post Alignments", Akroyd, C. (Ed.) Advances in Management Accounting (Advances in Management Accounting, Vol. 35), Emerald Publishing Limited, Leeds, pp. 19-44. https://doi.org/10.1108/S1474-787120230000035002
Publisher
:Emerald Publishing Limited
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