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Budget evaluation refers to the final stage of the budget cycle when there is an assessment of whether public resources have been used appropriately and effectively. For this stage to support good governance and the effective and efficient use of public resources, estimates of the budget implementation and its impact must include assessments by bodies that are independent of the government and that have sufficient capacity and resources to perform their task (Wolf & Floyd 2017).
Evaluation of how forecasting, strategic planning, and budgeting processes impact an organization.
Duliba Insurance, for instance, is an organization that has shown significant improvement as a result of the budgeting process that includes forecasting and strategic planning for the activities of the organization involving finances. Going by the evaluation of the organization, there has been a significant impact experienced by the budgeting evaluation processes. Most importantly, the budgeting process is a key to the determination of the objectives of the organization (Wolf & Floyd 2017). The process of allocation of resources in the organization is a pointer to the direction of the organizational goals and hence the organization is has been able to work strategically towards the achievement of its set purposes. The roadmap the organization uses in deciding whether or not the organization should expand or diversify its operation to fit in the prevailing conditions in the market.
The executive management of the organization can make early arrangements to meet a given goal by virtue of budgeting. The projection of resources to allocate for a given activity in the organization is achieved by the evaluation of the previous period of operation. This helps in making adjustments on areas that could not have been well allocated to prevent the eventuality of making losses.
Examples from professional experience in the former organization
From experience of being a financial managing professional, it is clear and rationale to say and justify that budgeting process is impactful in an organization. For example, working as a financial director for Duliba Insurance, using reserve in the department was of high impact since it saved on the expenditure and misuse of the resources. These reserves can be used in making adjustments to supplement the processes ongoing. Another example is carrying forward and projecting the balances (Rahimi & Kozak 2017). This worked well with the principles that were agreed on to carry forward the balances of non-staff expenditure and projects that are unmarked. These are done in the professional service department.
Key stakeholders in the budgeting process of the organization
According to Rahimi & Kozak (2017), there are many stakeholders in the organization. Some of these stakeholders are very key in the budgeting process regarding the departments and positions they hold as well as their professional proficiency. In any budgeting process, the following are very important; the project owner, in this case, the vision bearer of the organization is key since he generates the original idea that is to be worked on by the other stakeholders to meet the initial objective of the organization. This includes all the people in the top leadership of the organization. The design and communication department personnel and the planning specialists are also important in the process. The auditing departments are also important in the evaluation of how the resources have been used in the past and a better way to use them in the future to maximize incomes and reduce the expenditures in the future. In summary, the knowledge of evaluating budgeting process including strategic planning and forecasting in the organization is essential since it helps in making a more effective work out the plan of the organization and curbing the chances of wastages (Wolf & Floyd 2017).
Rahimi, R., & Kozak, M. (2017). Impact of customer relationship management on customer satisfaction: The case of a budget hotel chain. Journal of Travel & Tourism Marketing, 34(1), 40-51.
Wolf, C., & Floyd, S. W. (2017). Strategic planning research: Toward a theory-driven agenda. Journal of Management, 43(6), 1754-1788.
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