The aims that organisations set themselves are like signposts that provide a sense of direction for both them and their managers. However, statements of aims rarely spell things out in any real detail. They do not usually indicate precisely what has to be done, nor do they say what resources are needed to achieve the aims. So the next stage involves filling in these details. As a nurse manager, part of your job is to work out, and communicate, organisational expectations and available resources in detail. This is where budgets come in. In the first of two articles, Professor Euan Henderson of The Open University’s school of management looks at budgeting.

A BUDGET is a financial plan that sets out details about: