Managing Cash Flow

84 Planning and Budgeting
TOP MANAGEMENT I COMBINED I SEGMENT MANAGEMENT
approve the
strategic plan
set corporate
goals & objectives
set segment
goals & objectives
develop
detail plans
establish
priorities
allocate
resources
establish
budgets & programs
review and
approve
implement
evaluate and
replan as required
Exhibit 3.7
Short-Term Planning Cycle
tives and assure that they are consistent with operational needs—and that no constraints
exist that could prevent successful attainment. Once these plans are in
place, priorities must be established so that senior and segment management
know the extent of resources that need to be allocated to allow the goals, objectives,
and detail plans to be attained.
The short-term planning system at the segment level is a process in which
lower levels of management develop detail plans in accordance with their own
understanding of what top management requires of them. Upper management
then exercises top-down direction to support the broad framework of total organizational
objectives. In this two-way flow of ideas and purposes, a deeper understanding
is achieved as to the nature of the organization and how each
organizational unit plays a supportive role in accomplishing what the organization
wants to achieve.