William S. Bryans - Business Solutions for Budget Managers in Health and Personal Social Services

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Business Solutions for Budget Managers in Health and Personal Social Services

W J Bryans FCIS,FHSM

Business Solutions for Budget Managers in Health and Personal Social Services

First published 1994 by Longman Group Limited

Published 2018 by Routledge

2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN

52 Vanderbilt Avenue, New York, NY 10017

First issued in hardback 2018

Routledge is an imprint of the Taylor & Francis Group, an informa business

Copyright 1994 Taylor & Francis

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

Notice:

Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.

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

ISBN 13: 978-1-138-46764-4 (hbk)

ISBN 13: 978-0-582-25532-6 (pbk)

This book is dedicated to my wife, Edith, without whose support it could never have been written.

Objectives

Budget managers can improve the quality of their services through better financial performance.

Even in a climate of fierce competition for market shares and resources it is possible to create a surplus for service development by:

- strategic management of external and internal financial environments;

- operational management of workloads and resources; and

- tactical intervention to limit budget fluctuations to tolerable levels.

Managers can develop a budget management process that provides them with a framework in which they successfully evaluate, implement and intervene.

There is a variety of devices that facilitate that process.

At appropriate times, selected techniques can be applied so that the desired result is achieved. This means that managers must be competent in dealing with the prevalent culture and be amenable to altered priorities.

These competences need to endow managers with sensitivity to the organisational and management development requirements. They must provide an adequate mechanism to harmonise objectives.

This book will help managers accomplish these complex tasks.

Business Solutions for Budget Managers is a definitive statement of business principles as they should be applied to budget management in the modem health and social services business environment.

After reading this book, first-time and prospective budget managers will be equipped to tackle budget problems in a systematic and purposeful way, which can be tested against their budget performance so that improved competence is demonstrated.

It will be useful to managers in all disciplines, including social services, who endeavour to improve their own performance and the performance of their services. It will also be of interest to all those who work in or with other public, private and voluntary sector organisations.

It should also form part of that body of management literature which is the core of academic reading.

The advent of the internal market places a predominating need to obtain contracts.

Many other current business initiatives put an emphasis on financial performance. Influences such as competitive tendering, market testing, competing for quality, expenditure survey outcomes, etc, affect the overall financial climate.

The financial climate, which often resembles a near-0 growth, has an impact on purchasing, providing and resource budget capacity in health and personal social services.

Alteration in the balance of care and community care initiatives has generated a range of dependency-related problems. These are now widely perceived to require a carefully integrated organisation and management approach that clearly puts the patient or client first.

The promotion of the work-place as a management college is the basis that is used to enhance organisational compatibility and management competence.

The book bridges the gaps that exist between budget, business and contracting for care management. It emphasises the inextricable links between organisational and individual management performance.

Each of the 12 chapters includes a list of objectives and describes the theory and practice applicable to the topic, with appropriate illustrations, examples and a case study.

The book is divided into three parts:

1. Strategic management of the financial environment individual managers requirements to survive in the internal and external environment with particular emphasis upon the prevalent business culture and its effect on the direction of expenditure.

2. Operational management and tactical intervention organisation, structure, and business methodology applicable to the management of workload and resources in the contractual situation is the main theme of this part. Intervention is examined in the context of the key tasks in financial management (planning, profiling monitoring, intervening and monitoring), and in the context of the alteration in the balance of care.

3. Performance Criteria favoured by the organisation and which influence the financial climate are dealt with in this part. There is emphasis on performance measurement, and the improvement of performance. The acquisition and abuse of goodwill also features.

These matters are the basic principles which will be further developed in the following chapters. The structure is:

Contents

Part 2
Synopsis operational management and tactical intervention

Part 3
Synopsis Developing and measuring competence

The objectives of this chapter are to examine the main issues and in general terms set out the various problems which confront modem budget managers. Budget problems are usually first manifested in budget reports, but the underlying causes are complex. This is mainly the result of the reform programme.

Appropriate solutions are dependent on the correct diagnosis of the problem, or problems. In this chapter these problems are connected to the business culture topics:

The main business elements that regulate financial management are identified.

The need for an integrated approach is discussed.

The outline effect of the budget managers market share on income and budget is shown.

The relationship between cost, case load and budget is defined.

The impact of case mixtures and an alteration in care balance on resource consumption through increased dependency is demonstrated.

The contract capability and criteria for the measurement of income are identified.

Examples of significant variations and the need for

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