For every Financial Director, the festive period is a tough one to navigate. While everyone else has a watchful eye on their own bank balance, you’ve been planning your whole organisation’s budget for months. Generosity in line with Christmas cheer isn’t always achievable either, especially considering the unstable geopolitical climate. Unfortunately, these realities don’t prevent you from coming across as a budget Grinch, with a genuine contempt for the seasonal mood. But fear not; three simple steps can eliminate this perception altogether and help you to deliver your budget smoothly.
Step 1: Take your staff on a journey
No matter the blood, sweat and tears that you have put into your budget, it won’t suit everyone in the organisation – catering to the majority is all you can do. Aligning your work with corporate strategy will give you a solid foundation and your next move should be to ensure the employees on the ground are on board.
By involving them in the process – rather than leaving them alone to interpret your decisions without context – you will help to foster a co-operative working environment, making resistance to your budget far less likely. This will help you to take advantage of internal and external opportunities which promote growth, not only improving morale but salaries too. Hey, you might even end up with a few Christmas cards next year…
Step 2: Align your technology with your budget
One of the biggest complaints Financial Directors receive is that they have failed to properly allocate the budget. And, there is certainly is some evidence to explain this perception. Gleanster, for example, estimate that 89 percent of Key Decision Makers (KDMs) leverage under 33% of their corporate data when making “informed” business decisions. Fortunately, an integrated, cloud-based ERP solution is the Financial Director’s lucky sixpence.
The right ERP will provide an end-to-end view of your business’s performance, allowing you to more accurately allocate resources. By removing on-premise Excel dependence which locks essential information on individual desktops, crucial data silos can be eliminated. With more information at your disposal than ever before, you will be able to budget in an even more efficient and effective way, confounding rumours that your heart is two sizes too small through facts and figures.
Step 3: Be forward thinking
Some organisations are removing the very notion of a budget Grinch, simply by … well … doing away with budgets altogether. In these innovative approaches, individual processes covering areas such as target-setting, resource allocation, forecasting among others replace the management purposes which budgets are designed to cover.
Rather than people thinking that you are arbitrarily inflicting pain from your Mount Crumpit office, conflicts of interest can be reduced and you can put your feet up, without fear of ever being called the budget Grinch again.
Find out more about City Dynamics here.