Richard Field - Planning and Budgeting Skills for Health and Social Work Managers

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Planning and Budgeting

Skills for Health and

Social Work Managers

Planning and Budgeting

Skills for Health and

Social Work Managers

RICHARD FIELD

Series Editor: Keith Brown

Learning Matters

An imprint of SAGE Publications Ltd

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Editor: Luke Block

Development editor: Lauren Simpson

Production controller: Chris Marke

Project management: Swales & Willis Ltd, Exeter, Devon

Marketing manager: Tamara Navaratnam

Cover design: Wendy Scott

Typeset by: Swales & Willis Ltd, Exeter, Devon

Printed by: TJ International Ltd, Padstow, Cornwall

2012 Richard Field

First published in 2012

Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Design and Patents Act, 1988, this publication may be reproduced, stored or transmitted in any form, or by any means, only with the prior permission in writing of the publishers, or in the case of reprographic reproduction, in accordance with the terms of licences issued by the Copyright Licensing Agency. Enquiries concerning reproduction outside these terms should be sent to the publishers.

Library of Congress Control Number: 2011945611

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

ISBN 978 1 44625 672 5

ISBN 978 0 85725 987 5 (pbk)

Contents

List Of Figures

List Of Tables

List Of activities

Foreword

Many professionals in health and social care find one day that they have a new role: one of being a manager, and with this comes the responsibility for planning and budgeting within their organisations. Prior to this their training and development has been in a specific professional field in order to develop specific professional skills, knowledge and competence.

If you are one of these managers who has clear professional skills but has never formally engaged in leadership and management development then this text is for you. It is expertly written so that planning and budgeting skills are understandable and accessible. The text gives clear guidelines and tips on how to plan and budget effectively within a health and social care context and this is due in large part to Richard Field's expert knowledge as an accountant, academic and leadership consultant within the field of health and social care.

This text is one of a new series designed to support frontline social work/care leadership and management development. The series is designed to meet the learning needs and capabilities as set out in the 'Leadership and Management Development for Social Work and Social Care: Creating Leadership Pathways of Progression' strategy by Jane Holroyd, MBE and Professor Keith Brown (2011).

I commend this text to you and trust it will help you achieve the best possible health and social care in our society.

Keith Brown

Series Editor

Director of Centre for Post Qualifying Social Work, Bournemouth University

About the author

Richard Field is a qualified accountant and management development specialist who has extensive experience of working with managers and leaders across the public, voluntary and private sectors.

Having worked in local government as an accountant and in the university sector as a principal lecturer Richard became a freelance management development specialist in 1992. During the last twenty years Richard has helped hundreds of social care managers develop competence in planning and budgeting and advised many public and voluntary organisations on the development of effective approaches to planning and budgeting.

Acknowledgements

The author would like to thank all those managers who have shared their stories about how planning and budget management actually occurs within their organisations.

Section 1

Introduction

This text is written primarily as a practitioner guide for managers engaged in planning and budgeting within health and social care organisations. The aim is to promote effective approaches to planning and budget management within organisations and prompt the development of associated competence.

Two main health and social care audiences are envisaged:

• students undertaking academic programmes that feature planning and budgeting; and
• managers wishing to refresh, challenge and extend their practice.

In addition, this text will also be of assistance to managers in other parts of the public and voluntary sector.

This text focuses on:

• plans that are used for managerial rather than professional or personal purposes;
• planning processes and tools that can be used in many managerial situations; and
• budget preparation and control as practiced by managers rather than accountants.

The planning content is concerned primarily with business level strategy within an organisation rather than corporate or operational strategy. Johnson et al. (2008: 596) describe business level strategy as being about how to compete successfully in particular markets recognising that for public service organisations the equivalent concern is how to provide best value (p224). Likewise, content relating to budget management is primarily aimed at cost centres rather than corporate management.

For planning and budgeting to be included in the same book is quite unusual as professionally, organisationally and academically these two processes are often separated. However, there is a growing recognition of the need for planning and budgeting to be integrated, the case for which is made later. For now it is sufficient to say that where integration occurs managers will find it easier to engage in both processes and are likely to be more effective.

This book presents planning and budgeting in the order in which these should occur within organisations; that is planning first, from which budgeting should flow.

This book includes:

• written material intended to develop basic understanding of planning and budget management;
• activities designed to cause engagement with organisational practices related to planning and budget management; and
• tips for success considered central to cracking effective planning and budget management.

Section 2

Planning an introduction

This section introduces planning from personal and organisational perspectives, identifies common variations in planning practice and explains how these are influenced by personality and context.

What is planning?

Planning can be defined as the process by which a desired future state is conceived and an effective way of delivering this developed and resourced.

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