Financial management and dental school strength, Part I: Strategy.
The ultimate goal of financial management in a dental school is to accumulate assets that are available for strategic growth, which is a parallel objective to the profit motive in business. Budget development is often grounded in an income statement framework where the goal is to match revenues and expenses. Only when a balance sheet perspective (assets = liabilities + equity) is adopted can strategic growth be fully addressed. Four views of budgeting are presented in this article: 1) covering expenses, 2) shopping, 3) strategic support, and 4) budgeting as strategy. These perceptions of the budgeting process form a continuum, moving from a weak strategic position (covering expenses) to a strong one (budgeting as strategy) that encourages the accumulation of assets that build equity in the organization.
Chambers
David W
DW
School of Dentistry, University of the Pacific, San Francisco, CA 94115, USA. dchambers@uop.edu
Bergstrom
Roy
R
D000571:American Dental Association; D002017:Budgets / Q000379:methods*; D005376:Financial Management / Q000379:methods*; D007182:Income; D017059:Models, Econometric; D009937:Organizational Objectives / Q000191:economics*; D012575:Schools, Dental / Q000191:economics* / Q000458:organization & administration; D014481:United States