Strategic Planning And The Annual Budgeting Cycle

2366 WordsMay 5, 201610 Pages
Strategic planning is done with the 3 to 5-year roadmap, identifying the opportunities to improve the top line (business /premium growth) or bottom line (expense savings) Operational efficiency. The projects are identified through Strategic Planning and are then funded through the annual budgeting cycle. These annual budgets are based on the business performance for the prior years. Large strategic projects, also known as Level 1 initiatives, which span multiple years, are funded separately through a Corporate Budget. Once the budget for the year is decided, The Hartford also have a Steering committee (For large initiatives) and a Maintenance council (for medium sized enhancements) that takes the further function of prioritization of different initiatives and keeping track of the budget. IT Governance IT Infrastructure updates warranted by the implementation of large key initiatives are funded and governed as part of the overall IT Project governance. Infrastructure upgrades are treated as Reverse Demand and implemented as part of the technical upgrade. These projects are funded through the IT architecture budget. The business projects e.g. product development, pricing initiatives, profitability modeling etc. are initiated by the business leads. The business leads prepare a business case detailing the project including the business benefits. These projects are then presented to the Portfolio Council, which approves or denies the initial request. Once approved, if there is
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