Historically, budgeting, planning and forecasting have been driven by the finance function. However, enlightened organisations recognise the true value of combining the different perspectives, ideas, experience and know-how of all departments within the company. Department heads are the true experts in their area, after all.
The key challenge then becomes co-coordinating all this fantastic input from all areas of the business. In order for department heads to contribute meaningfully and robustly to the budgeting, planning and forecasting process, they do need to understand what is required of them and how and what this impacts.
I’ve witnessed exuberant sales managers, brimming with positivist and confidence, significantly over-estimate their forecasts. Equally, there are those sales managers who wish to “surprise” everyone by over-achieving on the very low estimates they could get away with putting forward. Both can be very damaging in a number of ways. It can appear that the company has no idea or control over its future direction, resulting in a loss of confidence by investors and banks, etc. and the resources required are often determined by sales forecasts and over or under-resourcing can have serious consequences for the business, among other things.
How would your key staff know of such consequences? What would it mean for your organisation if your key staff were fully appraised of the situation, understood how their input contributes so powerfully to driving the organisation forward and what would be their levels of motivation and buy-in if they were responsible for delivering the demanding targets they have been involved in setting themselves (rather than these being imposed)? As noted above, the enlightened among you will recognise the true value of this.
As always, we can provide a solution for you at Ripley Training! Our popular Brilliant Budgeting and Financial Forecasting course, delivered by an experienced and friendly commercial finance director, tackles all of the above issues and more – understanding the importance of budgets and forecasts, compiling them, communicating them and monitoring performance against them, taking corrective action where necessary, to ensure the organisation achieves its ambitious goals. All this is achieved in one fully interactive and engaging day that will have your staff buzzing and keen to put their new found skills into immediate action!
Simply call us on 01423 861122 or email us at firstname.lastname@example.org for further information. Details can be found on our website – simply click and book! Don’t see a date or location you like – please ASK! We can deliver both open courses and in-house.
I look forward to welcoming you very soon!