"However beautiful the strategy, you should occasionally look at the results"...WC
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It’s the time of the year again when many organisations are preparing plans and budget assumptions for year 2010. It may be good to time to dust off the steps we looked at in earlier articles budget assumptions, allocation and management of the budget.
Reports shows that, of the top 100 stock listed companies, the average time used for planning and budget preparation is not long at all. But this is in stark contrast to the time taken on analysis of budgets and revisions. This latter phase iterates over a much longer time as and discussion takes place as to how and if it is well coordinated to accommodate the companies’s strategy.
After top down business PLANS and budget ASSUMPTIONS are set, generally there are three budgeting phases. The first is a bottom up estimate of MANPOWER REVENUE and OPEX and CAPEX. This is then followed by ALLOCATIONS, and an operational PRIORITIZATION phase and finally the Capital FUNDING phase for approval review.
There are also many schools of thought that the budget step should be eliminated as it seems to waste so much time. This may good if rolling forecasts are well defined to place the annul budget but generally this only replaces the first phase. Many also subscribe the the thought that to much short term focus limits the organisation ability to focus and can cause it to falter. Doing budgets in the traditional way tends to allows greater focus also on the 3 year plan and draws a distinct line in the sand in on commitments by operations.
But either way, make no mistake, the budget is a vital process to get alignment for the organisation The better this is done the better the result. The final document is underpins the agreements reached for performance for the ensuing year and it a solid reference point to measure against and provides for consideration by external stakeholders . People such as shareholders, business partners, creditors and banks and financing institutions enjoy a much greater degree of confidence when budgets are well thought through and are likely to remain or increase any involvement.
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With limited time available in the quest for productivity, we multi task. Or do we? If this is not true what is it that we do?
Multi-tasking I just learned it is a myth. Something you do when you drive home and then wonder who drove.
This week I was challenged as I juggled my priorities and my personal life. Having already reduced my to-do list to something sensible, it still looked foreboding.
To make it worse, the unforeseen political agenda in Thailand where I have done business this month has thrown normality into chaos. Plus, my daughter just announced she was arriving early to visit me this week from her India trip, before we then head home to Australia together next week .
So it was time to step up my skill in multi tasking. But before I did I decided to do some research on just what that was.
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Categories: General Management, Human Resources, Performance Management, Productivity Tags: CEO, Decsion support, Generate power, Multi-tasking, Overreacting, Performance Managemnt, Productivity, Rapid refocusing
Being flexible to take advantage of opportunity is not one of the stronger attitudes of people. In the end we are creatures of habit which is what organizations rely on, to have us do our work.
But as the markets have been changing and work place thinking reassesses its investments, options for those willing to change are now considerable, especially for people with real skill now in demand.
As one of my colleagues said to me recently, “Having a job sure beats working.” What he meant was, those who avoid dole queues and the anxiety of the job search, are those who can adapt.
In organizations it is no different. Getting into different work may be as simple as using the skills we have another way. Using things like software as a service and cloud services for outsourcing to get results quickly are now reality. They are being used for such things as sales and supply chain management widely and now are starting to surface in previously hallowed areas like confidential business analytics. But even this is outside the square for so many people like Mr. Duck
But think about it. Even the outsource worker has caught on to how to work on a remote VPN access; And is also doing well in this new world, as many companies still struggle with an outdated mentality that will leave them behind, as others set up new tents .
Talented people and organization that are also smart enough to see the opportunity are going there and winning.
This reminds me of the good old story of Mr.Duck . It goes something like this.
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