The relationship between strategic planning and budgeting: the case of Brazilian navy organizations

Abstract

Due to increasing demands and complexity, public organizations need to use tools that allow their institutions to conduct certain directions, which seek to improve public services and reduce waste. Similarly, the military must make efforts in a coordinated and articulated manner, aiming to overcome a bureaucratic administration, adjusting their actions and management processes to achieve results-oriented public management. In this scenario, strategic planning is indispensable. However, formulating the strategic planning is not enough. The strategic planning must be effectively implemented, with a view to permeating the other processes of the organization. Therefore, this study investigated how strategic planning influences the management systems of organizations, especially the budgetary system, which is highly relevant to the public sector. Then, the aim of this study is to identify which factors affect the relationship between strategic planning and the preparation of budget proposals in organizations. To this end, a multiple case study was used in the analysis of four organizations of the Brazilian Navy. The research unveils several factors that influence the relationship between strategic planning and budgeting, as well as the impacts caused by these factors. It appears that the high involvement of heads of organizations, combined with the culture of administrative modernization and tools promoted by Neptune Program, have contributed to a more effective use of PEO, which happens to have a closer relationship with the budgetary system.