Strategic Financial and Capital Planning

Without a strong financial and capital plan in place, and without clear financial vision, colleges and universities run a very real risk of making strategic decisions that may not be in the organization’s best financial interests.

By contrast, organizations that embrace a long-range and integrated strategic, financial, and capital planning process—one based on established and accepted corporate finance principles—almost always achieve financial results that are consistent with their long-term strategic and investment requirements.

When properly developed and implemented, the strategic financial and capital plan serves as a blueprint for future growth. It brings key issues into focus by mapping out available financial resources and matching those resources with strategic capital requirements. It brings quantitative reasoning to the strategic plan. In short, a strong strategic financial and capital plan provides you with the knowledge needed to make informed strategic and operational decisions.

Integrating Strategy and Finance

Kaufman Hall believes that strategic planning and financial planning are not discrete activities to be completed through disconnected processes. They are highly interrelated and interdependent disciplines that are the cornerstones of effective organizational and financial management.

Our experts work closely with you to develop and implement a strategic financial and capital plan that:

  • Links the organization’s strategic mission and vision to measurable financial objectives
  • Identifies whether identified strategies are financially supportable given the organization’s capital capacity
  • Describes future financial risk in quantitative terms, considers alternative scenarios, and specifies sensible, proactive strategies to address expected or unexpected changes
  • Enables the organization to react quickly and flexibly in a dynamic and complex marketplace

Financial performance must be sufficient to meet the cash flow requirements of your organization’s strategic plan and, at the same time, maintain or improve its financial integrity within an appropriate credit and risk context. We ensure an effective balance between strategic needs and financial capabilities.

Services include:

  • Development of integrated strategic financial and capital plans
  • College and university credit position analyses
  • Capital position and debt capacity analyses
  • Multi-year financial projections and risk/sensitivity analyses
  • Business planning and analysis
  • Executive and trustee education related to corporate financial management