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NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget

Student Name Capella University NURS-FPX 6216 Advanced Finance and Operations Management Prof. Name Date Preparing and Managing a Capital Budget Capital Acquisition and Assumptions Capital budgeting plays a pivotal role in organizational planning and decision-making, especially concerning resource allocation for various projects. Such investments are long-term and require meticulous management to ensure sustainability (Bosch-Badia et al., 2020). In the context of a 50-bed facility grappling with nursing turnover due to workplace dissatisfaction, the proposed plan entails creating a budget for staff training and refurbishing their lounge. As a nurse leader, my objective is to establish a rejuvenating nurses’ lounge to boost morale and motivation, thereby necessitating a comprehensive capital budget for resource analysis and effective outcomes. The renovation scope aims to alleviate the bleak work environment contributing to nurse attrition. Studies underscore that fostering a positive workplace environment fosters staff motivation, reduces medical errors, and enhances patient care (Maassen et al., 2021). The envisioned lounge makeover entails installing comfort-enhancing amenities such as medicated furniture, lockers for secure storage, and vending machines for nutritional needs. Additionally, prioritizing hygiene management ensures a safe and relaxed environment for the nursing staff. The projected timeline for completion is eight months, incorporating infrastructural changes to accommodate the needs of fifty to sixty nurses. The underlying assumption is that catering to nurses’ comfort and needs will augment their satisfaction levels, ultimately enhancing healthcare quality. Justification for the Capital Acquisition Research emphasizes the pivotal role of nurse motivation in ensuring quality healthcare delivery and staff retention (Karaferis et al., 2022). Renovating the facility to cultivate a sense of belonging among nurses is imperative for nurse leaders. Such enhancements not only prioritize staff well-being but also augment productivity and organizational outcomes (Zhenjing et al., 2022). By providing a conducive work environment, the proposed changes aim to empower nurses, thereby fostering patient-centered care and improving overall service quality. Failure to address nurses’ holistic needs can compromise patient care quality, underlining the significance of lounge renovations (Pedrosa et al., 2020). Improving employee satisfaction correlates with enhanced care quality, aligning with the organization’s patient-centered care mission. Establishing a designated lounge acknowledges staff contributions, fostering a collaborative and positive workplace culture. Moreover, executives are urged to view this budget positively, recognizing its potential to mitigate turnover rates and elevate patient satisfaction. Preparing a Capital Budget The implementation timeline for the current budget spans eight months, commencing with data collection and needs assessment through interviews and surveys. The budget’s premise revolves around creating a supportive and stress-free environment conducive to nurse comfort and motivation. Table 1 in the Appendix delineates the budget allocation across various expense categories. However, uncertainties surrounding leadership dynamics and workload necessitate careful consideration to mitigate budgetary risks. Process of Calculating Cost Cost estimation entails collating data from vendors and market surveys to ascertain pricing for proposed changes. Vendor quotations are evaluated based on the payback period method, facilitating informed decision-making (Mollah et al., 2021). The finance team spearheads cost calculations, leveraging capital budgeting techniques to ensure optimal resource allocation. Budget Management Plan Effective budget management hinges on inter-professional collaboration and proactive cost-control measures. Collaborating with stakeholders ensures alignment with organizational goals, while vigilance in expense monitoring enables timely adjustments. Positive inter-professional collaboration correlates with successful project execution, highlighting the significance of teamwork in healthcare projects (Schmidt et al., 2021). Impact of Capital Acquisition on Financial Health The initial renovation phase may strain the organization’s finances, albeit with long-term benefits such as reduced turnover costs and enhanced staff productivity. A projected 50% return on investment within six to eight months underscores the financial viability of the proposed changes. However, prudent analysis of depreciation values and tax implications is imperative to optimize financial decision-making. References Awosoga, O. A., Odole, A. C., Onyeso, O. K., Ojo, J. O., Ekediegwu, E. C., Nwosu, I. B., Nord, C., Steinke, C., Varsanyi, S., & Doan, J. (2023). Perceived strategies for reducing staff-turnover and improving well-being and retention among professional caregivers in Alberta’s continuing-care facilities: A qualitative study. Home Health Care Services Quarterly, 42(3), 193–215. https://doi.org/10.1080/01621424.2023.2166889 Bosch-Badia, M.-T., Montllor-Serrats, J., & Tarrazon-Rodon, M.-A. (2020). The capital budgeting of corporate social responsibility. Sustainability, 12(9), 3542. https://doi.org/10.3390/su12093542 Dash, S., Shakyawar, S. K., Sharma, M., & Kaushik, S. (2019). Big data in healthcare: Management, analysis and future prospects. Journal of Big Data, 6(1), 54. https://doi.org/10.1186/s40537-019-0217-0 NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget Karaferis, D., Aletras, V., Raikou, M., & Niakas, D. (2022). Factors influencing motivation and work engagement of healthcare professionals. Materia Socio-Medica, 34(3), 216–224. https://doi.org/10.5455/msm.2022.34.216-224 Maassen, S. M., van Oostveen, C., Vermeulen, H., & Weggelaar, A. M. (2021). Defining a positive work environment for hospital healthcare professionals: A Delphi study. PLoS ONE, 16(2), e0247530. https://doi.org/10.1371/journal.pone.0247530 Mollah, A. S., Rouf, A., & Rana, S. M. S. (2021). A study on capital budgeting practices of some selected companies in Bangladesh. PSU Research Review, 7(2), 137–151. https://doi.org/10.1108/PRR-10-2020-0035 Pedrosa, A. L., Bitencourt, L., Fróes, A. C. F., Cazumbá, M. L. B., Campos, R. G. B., de Brito, S. B. C. S., & Simões e Silva, A. C. (2020). Emotional, behavioral, and psychological impact of the covid-19 pandemic. Frontiers in Psychology, 11. https://www.frontiersin.org/articles/10.3389/fpsyg.2020.566212 NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget Schmidt, J., Gambashidze, N., Manser, T., Güß, T., Klatthaar, M., Neugebauer, F., & Hammer, A. (2021). Does interprofessional team-training affect nurses’ and physicians’ perceptions of safety culture and communication practices? Results of a pre-post survey study. BMC Health Services Research, 21(1), 341. https://doi.org/10.1186/s12913-021-06137-5 Zhenjing, G., Chupradit, S., Ku, K. Y., Nassani, A. A., & Haffar, M. (2022). Impact of employees’ workplace environment on employees’ performance: A multi-mediation model. Frontiers in Public Health, 10, 890400. https://doi.org/10.3389/fpubh.2022.8 Appendix Table 1a: Expense Categories and Amount Required Categories Amount required ($) Expenses of construction (lockers, bathrooms, etc.) 400,000 Infrastructural changes (furniture, equipment, etc.) 200,000 Labor expense 175,000 IT development expense 250,000 Maintenance charges 90,000 Hygiene management charges 50,000 Miscellaneous 60,000 Total 1,225,000

NURS FPX 6216 Assessment 3 Budget Negotiations and Communication

Student Name Capella University NURS-FPX 6216 Advanced Finance and Operations Management Prof. Name Date Budget Negotiations and Communication The operating budget stands as a crucial element in the realm of business acquisition management. The nursing leader shoulders the responsibility of both crafting and overseeing the budget while ensuring comprehensive management of all aspects within the facility. This assessment centers on the development and negotiation of a budget tailored for a 35-bed hospital servicing an elderly population with a staff equivalent of 20 members, many of whom opt for part-time employment. The focal points of this assessment revolve around justifying and communicating the proposed budget, with a particular emphasis on two key dimensions: staff retention and patient-centered care. The budget justification delineates a strategic plan aimed at enhancing fiscal profitability, bolstering staff productivity, rationalizing equipment and service costs, and forging a nexus to fortify both the budget and the organization’s overarching objectives. Strategic Plan for Profitability and Fiscal Success In formulating the current budget, a needs analysis underscored staff retention and patient-centered care as primary imperatives. The strategic objective entailed augmenting staff retention and patient-centered care through a SWOT analysis, which furnishes a pragmatic assessment of the organization and its milieu, while delineating current organizational conditions and internal capabilities (Gharachorloo et al., 2021). The blueprint of this plan aimed to furnish nursing leaders with a directive to prioritize their needs and operationalize accordingly. NURS FPX 6216 Assessment 3 Budget Negotiations and Communication However, the strategic planning for fiscal success is beset by uncertainties stemming from market volatility and economic fluctuations, which may impact the quantum of budgetary allocations earmarked for change initiatives. Furthermore, other salient considerations encompass the dynamic nature of industry trends, regulatory compliance imperatives, and the ramifications of technological advancements on care standards. Plan for Staff Productivity Goals Given that patient-centered care hinges significantly upon staff productivity—wherein motivated staff engender an environment conducive to collaborative learning and patient-centric care—it becomes imperative to safeguard against diminished productivity, which heightens infection risks and compromises care quality (Kara Ferris et al., 2021). To this end, measures aimed at enhancing staff productivity are delineated as follows: Feedback Mechanisms: Instituting feedback mechanisms facilitates the solicitation of insights and perspectives from staff, thereby affording insights into the challenges they confront. Given the correlation between low staff retention and workload burdens, it becomes imperative to heed feedback and augment workforce numbers to rectify imbalances in the nurse-to-patient ratio, thereby enhancing staff productivity through workload distribution. Stakeholder Engagement: Facilitating stakeholder awareness pertaining to shifts in operational paradigms—such as performance appraisals, revamped salary structures, and workload optimization—serves to foster a sense of belongingness among staff members. Additionally, scrutinizing workload patterns to pinpoint areas necessitating improvement, such as optimizing patient flow, task allocation, and staff scheduling, stands to enhance staff retention. Progress Monitoring: The efficacy of any plan hinges upon the adoption of a modus operandi characterized by continuous modification and evaluation. Accordingly, to effectuate meaningful changes, it becomes imperative to institute a feedback loop that affords staff the opportunity to acclimate to changes iteratively. Alternative approaches such as outsourcing and mandating overtime were eschewed on account of their impracticality. Outsourcing, while potentially lowering labor costs, carries concomitant risks vis-à-vis compromised care quality and staff morale owing to job insecurity. Similarly, mandating overtime risks exacerbating fatigue and job dissatisfaction, precipitating compliance lapses, and straining the employer-employee rapport. Justification of Equipment and Service Costs Effective budgeting of essential utilities and expenses is instrumental in fostering operational efficacy and judicious resource allocation. Post-employee salaries, compensation, and appraisals, one of the primary expense categories comprises utilities, medical supplies, and medications, necessitating substantial budgetary allocations. Adroit resource allocation empowers businesses to optimize budgetary outlays and channel resources toward areas yielding maximal impact (Xi et al., 2023). Moreover, the allotment earmarked for medical supplies encompasses technology, machinery maintenance, and medication provisioning—indispensable components underpinning patient-centered care. Conversely, with regard to services, expenditures relating to hygiene management, maintenance, and training assume prominence owing to their pivotal role in curbing turnover rates and fostering patient-centered care. Adherence to stringent policies governing service maintenance holds the potential to engender revenue generation, underpinning research attesting to the efficacy of investments in service and equipment maintenance in bolstering patient-centered care and staff morale (Edgman-Levitan & Schoenbaum, 2021). Link Between the Organization’s Mission and the Project The project endeavors to harmonize with the organization’s overarching mission—to furnish patient care and foster inter-professional collaboration to augment care provision for the elderly demographic. The current project seeks to bolster financial performance while foregrounding staff retention and patient-centered care. The budget blueprint is crafted to engender enhanced patient interactions within the hospital milieu and elevate satisfaction levels by espousing patient-centered care principles. Likewise, the budget prioritizes curtailing turnover rates by incentivizing staff retention through appraisals and compensation packages. Research attests to the nexus between financial stability and strategic planning aimed at ameliorating patient care (Dennis, 2019), thereby underscoring the pivotal role of budgetary efficacy and precision in empowering hospitals to focus on facets such as employee retention, training, and development—further buttressing the efficacy of patient care initiatives. Conclusion In summation, the current assessment is predicated upon efficacious budget management to fortify financial viability and elevate care standards within the organization. Strategic planning emerges as a linchpin in this endeavor, guiding each step and ensuring alignment of the budget with profitability imperatives. Concurrently, staff productivity stands as a pivotal focal point, with feedback loops, stakeholder engagement, and progress monitoring serving as instrumental levers for enhancing productivity. Ultimately, the budget is intricately interwoven with the organization’s overarching mission, foregrounding the imperative of providing patient-centered care. References Dennis, C. (2019). Strategic planning—A health system operational perspective. Journal of Hospital Management and Health Policy, 3(0). https://doi.org/10.21037/jhmhp.2019.10.03 Edgman-Levitan, S., & Schoenbaum, S. C. (2021). Patient-centered care: Achieving higher quality by designing care through the patient’s eyes. Israel Journal of Health Policy Research, 10, 21. https://doi.org/10.1186/s13584-021-00459-9 Gharachorloo, N., Nahr, J. G., & Nozari, H. (2021). Swot analysis in the general organization of labor, cooperation and social welfare of east Azerbaijan province with a
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NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

Student Name Capella University NURS-FPX 6216 Advanced Finance and Operations Management Prof. Name Date Preparing and Managing the Operating Budget Healthcare management involves continuous efforts to enhance the quality of care through effective planning, organization, and evaluation within organizational settings. Nursing leaders play a crucial role in overseeing operational budgets, improving staff and patient satisfaction, and fostering innovation and empowerment within their teams (Brennan & Wendt, 2021). Successful budget planning and allocation require a blend of business acumen, understanding of healthcare management, and resource allocation expertise. Research indicates that equipping nursing leaders with business skills enhances their effectiveness, allowing them to navigate complexities, make informed decisions, and deliver patient-centered care (Alsadaan et al., 2023; Sonmez-Cakir & Adiguzel, 2020). This integration of business knowledge enables leaders to drive innovative changes while prioritizing staff and patient needs, thereby improving clinical outcomes. Effective nursing management not only enhances patient outcomes but also boosts morale and productivity organization-wide (Specchia et al., 2021). This article examines the preparation and management of an operating budget for a 35-bed hospital with 20 full-time equivalent employees, focusing on staff retention, patient-centered care, and fiscal responsibility. Operating Budget An operating budget outlines an organization’s anticipated expenses and revenue for a specific period, guiding financial operations. In a healthcare setting, this budget typically includes costs such as medical supplies, staff salaries, training, and technology maintenance, alongside revenue sources like patient care fees, research grants, and charitable funds (Abdulsalam & Schneller, 2019). The proposed operating budget aims to enhance staff retention and patient-centered care by strategically allocating resources. It spans one year, divided into quarters for ongoing analysis and adjustment. Emphasis is placed on initiatives such as performance reviews, bonuses, and telehealth integration to improve staff retention, while infrastructure upgrades and enhanced medical supplies aim to enhance patient care. Table 1 (a):  Budget category and the Expense per year (USD$) Budget Category  Expense Per Year (USD $) Staff Salaries  800,000 New hiring  300,000 Compensation of Budget 200,000 Appraisal and bonuses  300,000 Assessment funds  100,000 Medical supplies  200,000 Medication  400,000 Research and training  300,000 Maintenance of Technology 150,000 Hygiene management  200,000 Total expense  2,950,000 Table 1(b) Budget Category and the Revenue per Year (USD$) Category  Revenue Per Year (USD$) Patient care  900,000 Research grants  350,000 Charitable Funds  900,000 Medical aids  700,000 Staff retention  500,000 Total Revenue  3,350,000 Budget Creation and Design Budget creation involves meticulous planning and analysis, incorporating insights from previous trends and organizational goals (Nilsen et al., 2020). SWOT analysis helps identify internal strengths and weaknesses, as well as external opportunities and threats, informing budget allocation. Data gathered from need assessments and SWOT analysis inform budget allocation, ensuring alignment with organizational objectives. Investments in staff retention, patient-centered care, and training and development are prioritized, with regular monitoring and evaluation to track progress and adjust as needed. Strategic Plan and Evaluation Criteria A strategic plan is developed to align budgetary goals with organizational objectives, focusing on staff retention and patient-centered care. Initiatives such as competitive compensation packages and patient engagement strategies aim to achieve these goals (Kwame & Petrucka, 2021). Evaluation criteria include measures of staff satisfaction, patient feedback, and clinical quality indicators, ensuring ongoing assessment and adjustment to optimize budget performance. Flexibility is maintained to address unforeseen challenges and opportunities. Conclusion In conclusion, effective preparation and management of an operating budget are essential for healthcare organizations to achieve their objectives. By prioritizing staff retention and patient-centered care, and employing strategic planning and evaluation, nursing leaders can drive positive outcomes and enhance organizational success. References Abdulsalam, Y., & Schneller, E. (2019). Hospital supply expenses: An important ingredient in health services research. Medical Care Research and Review, 76(2), 240–252. https://doi.org/10.1177/1077558717719928  Alsadaan, N., Salameh, B., Reshia, F. A. A. E., Alruwaili, R. F., Alruwaili, M., Awad Ali, S. A., Alruwaili, A. N., Hefnawy, G. R., Alshammari, M. S. S., Alrumayh, A. G. R., Alruwaili, A. O., & Jones, L. K. (2023). Impact of nurse leaders behaviors on nursing staff performance: A systematic review of literature. INQUIRY: The Journal of Health Care Organization, Provision, and Financing, 60, 004695802311785. https://doi.org/10.1177/00469580231178528  Brennan, D., & Wendt, L. (2021). Increasing quality and patient outcomes with staff engagement and shared governance. OJIN: The Online Journal of Issues in Nursing, 26(2). https://doi.org/10.3912/OJIN.Vol26No02PPT23 NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget Kwame, A., & Petrucka, P. M. (2021). A literature-based study of patient-centered care and communication in nurse-patient interactions: Barriers, facilitators, and the way forward. BMC Nursing, 20(1), 158. https://doi.org/10.1186/s12912-021-00684-2  Nilsen, P., Seing, I., Ericsson, C., Birken, S. A., & Schildmeijer, K. (2020). Characteristics of successful changes in health care organizations: An interview study with physicians, registered nurses and assistant nurses. BMC Health Services Research, 20(1), 147. https://doi.org/10.1186/s12913-020-4999-8  Sonmez Cakir, F., & Adiguzel, Z. (2020). Analysis of leader effectiveness in organization and knowledge sharing behavior on employees and organization. SAGE Open, 10(1), 215824402091463. https://doi.org/10.1177/2158244020914634 Specchia, M. L., Cozzolino, M. R., Carini, E., Di Pilla, A., Galletti, C., Ricciardi, W., & Damiani, G. (2021). Leadership styles and nurses’ job satisfaction. Results of a systematic review. International Journal of Environmental Research and Public Health, 18(4), 1552. https://doi.org/10.3390/ijerph18041552 Weyman, A. K., Glendinning, R., Costa, J., O’Hara, R., Roy, D., & Nolan, P. (2023). Should I stay or should I go? NHS staff retention in the post COVID-19 world: Challenges and prospects. https://doi.org/10.5281/zenodo.7611656  Wong, K., Chan, A. H. S., & Ngan, S. C. (2019). The effect of long working hours and overtime on occupational health: A meta-analysis of evidence from 1998 to 2018. International Journal of Environmental Research and Public Health, 16(12), 2102. https://doi.org/10.3390/ijerph16122102 NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget 

NURS FPX 6216 Assessment 1 Instructions: Mentor Interview

Student Name Capella University NURS-FPX 6216 Advanced Finance and Operations Management Prof. Name Date Mentor Interview Knowledge regarding business and financial management is one of the critical knowledge aspects for a nursing leader, as it allows them to effectively analyze the current healthcare trends, both local and international, to bring practical, patient-centered outcomes within their organization. Researchers have highlighted that combining clinical and business skills helps nurses maximize their growth within the healthcare system while meeting the demands of the ever-evolving healthcare community (Figueroa et al., 2019). This comprehensive knowledge empowers nurses with their leadership and management skills, adapting them to become more proactive regarding their decision-making abilities and allowing them to challenge traditional ways and bring innovative reforms (Mlambo et al., 2021). One of the critical aspects of business management within healthcare is budgeting and resourcing. The current assessment is based on a mentor interview with Ms. Liu, a master’s level nursing leader with three years of experience in business management and facility care hospital budgeting. She has worked at Florida Community Care for four years. The current interview was based on a discussion of different budgeting approaches, budget management, and their effect on the quality of care within the organization where Ms. Liu has been working. Comparison Between the Management of the Operating and Capital Budgets The interview began by discussing the difference between managing an operating budget and managing a capital budget. Ms. Liu identified that these budget categories are two distinct and essential processes of the financial management process within an organization. She highlighted that both budgeting processes serve the same purpose of financial decision-making but differ in their approach, durations, strategic objectives, assets, purchases, and funding. Ms. Liu highlighted that the operating budget is a short-term period focused on revenue generation and day-to-day expenses, covering routine operational expenses such as salaries, utilities, supplies, and other ongoing operational activities. The operational budget can be prepared annually and is flexible. The capital budget is a long-term investment in things such as buildings, machinery, technology, and infrastructure. It involves significant expenditures with extended paybacks. Literature review by Michelon et al. (2020) explains the capital budget as a systematic planning method that helps organizations evaluate and invest in long-term beneficial assets such as machinery, facilities, and technologies, while the operational budget is a subdivision that allows organizations to become more structured in their financial spending and keep track of it (Srithongrung et al., 2019). NURS FPX 6216 Assessment 1 Instructions: Mentor Interview Furthermore, she enlightened us that operational budgeting focuses on portability and liquidity, while capital budgeting focuses on long-term strategic capabilities, productivity, and competitiveness. The discussion proceeded on the processes and the flexibilities within the budget approaches and decision-making processes. She highlighted that operational budgeting decision-making is primarily based on optimizing current resources and managing operational efficiency; therefore, the approval for this sort of budgeting falls under the department heads. While the capital budget is focused on risk assessment, evaluation of potential opportunities, and long-term impact assessment, approvals fall under the domains of the board of directors and CFOs. However, knowledge gaps involve the requirements associated with the comprehensive return on investment analysis, the impact of investment on technological advancement and how it affects the operational and capital budgeting processes, and the market conditions that may affect the need for budgeting and its application. Allocating Resources for Labor, Equipment, and Services The interview further delved into discussing how the allocation of resources occurs within this kind of budgeting. The budget allocation holds a significant place as it allows a fair resource distribution between labor, equipment, and services, helping the organization to be more confident in its practices and care provision. Researchers have indicated that efficient budgeting heavily relies on proper resource allocation, which helps the organization allocate budgets with quality (Bouzari et al., 2023). Ms. Liu strongly urges that budgeting should be aligned with a need-based assessment of the organization, which provides the organization with a clear idea regarding the current prioritized needs and adjusts the resources accordingly. She explained that the allocation process is based on the assumption that leaders conduct a need assessment, develop a year- or two-year-long plan, allocate resources, and then evaluate the process. Also, it is assumed that the required resources will be readily available without shortages when needed, and the estimated cost will reflect the actual market conditions. NURS FPX 6216 Assessment 1 Instructions: Mentor Interview The process begins with assessing the needs and then identifying the resources required for labor, equipment, and services. The budget division is based on liquidity and probabilities, as labor’s budget is flexible because it covers salaries and training. The equipment has a fixed budget as it is a one-time purchase, and maintenance is usually carried out with every new budget. In contrast, the service budget is higher as it is associated with vendors, contractors, and outsourcing. Like many organizations, her organization also uses Outlook and Excel for communication and spreadsheets that show yearly trends, expenses, revenues, and timelines and compare them to past-decade trends, reflecting on the success rate and highlighting areas for improvement. After allocation, content monitoring is done to see if the budgeting is aligned with goals, and evaluation is based on revenue generation and a balanced scorecard. Kruk et al. (2018) have highlighted that high-quality healthcare systems are based on equal and balanced resource distribution that aligns with the organization’s needs and facilitates decision-making. Effective Approach to Profitability and Fiscal Success The practical approach to profitability and fiscal success is based on strategic planning through need-based analysis, risk assessment, SMART goal setting, and SWOT analysis, which helps the organization readily identify the need and allocate resources. Risk assessment provides a comprehensive assessment that can help achieve profitability and success by estimating and mitigating risk (Srinivas, 2019). Also, the SMART goals help the organizations reach their targets on time and ensure that the staff is motivated and enthusiastic about success. Ms. Liu highlighted that the process used for strategic planning in Florida Community
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