Note: Running most Fridays in FromGregsHead.com, this is a continuing series of budgeting tips brought to you by Ventana Research and PKF Texas. These run Saturday mornings during the BusinessMaker’s Radio Show on SuperTalk 97.5. Audio files can be found on the Entrepreneur’s Playbook page of the PKF Texas website.
Does your company have a “quality” budgeting and planning process? A quality process is one that:
- Aligns the budget to your corporate strategy
- Promotes accuracy
- Increases organizational agility
- Deepens operation insight for everyone involved and for the company as a whole
To gain a leg up on your larger, entrenched competitors, you need to allocate your budget resources to your strengths. Accuracy is important. But in this case, we are talking about wider participation, and increased communication among functional silos.
Because of our constantly changing world managers should think contingently about their areas and the impact of events on their budget.
And finally, if your company is growing rapidly, executives in mid-size companies may not appreciate that not everyone is working off the same page the way they used to.
By budgeting and planning more effectively, mid-size companies can recapture the agility they had as a smaller organization and overcome the advantages that their larger competitors enjoy.