Your Strategic Financial Policy Document: A Sample

Ideas & Perspectives
Ideas & Perspectives

Volume 32

No. 13//

October 16, 2007

ISM’s recommended 13-line strategic financial plan model has been in widespread use for some time. This short, six-year (i.e., displayed in six columns) expression of your strategic plan comprises a one-page attachment to the plan itself and represents the quantitative expression of that plan. The great virtue of the 13-line model is that it allows Board members who are not mathematically inclined or have little financial expertise—often either a majority or a substantial minority—to understand the financial ramifications of the positions they take on strategic issues. The 13-line document attends to the main strategic numbers and, by purposeful exclusion, leaves everything else alone. (And the “everything else,” of course, falls to the Finance Committee, thereby honoring a core ISM strategic-Board concept—a differentiation of function.)
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