The Algorithm Blog
Planning any project makes it go smoother. Budgeting is no different.
Our Dennis Easter leads this educational webinar where he explores how applying project management to the budgeting process brings this oft dreaded process to a successful, repeatable conclusion. Areas of focus include scope, resources, and technology.
Dennis is a financial planning and analysis connoisseur and Business Applications Consultant with Algorithm who has helped a multitude of companies with their budgeting strategy and development.
Constraints from data silos and manual processes are a thing of the past. You need a competitive advantage to impact your sales and revenue decisions. In this webinar Algorithm and Prophix dive into ways you can:
- Gain greater visibility into revenue
- Create assumptions to monitor forecasts and revenue anomalies
- Use workflows to create a single version of the financial truth
- Run rolling forecasts and what-if scenarios for multiple views
- Integrate real-time data adapting to market changes such as currency rates, interest, production levels and payments
Rarely has a budget been seen in a positive light. In personal finance, it is just a yoke that keeps you from doing the things you want like taking a vacation or buying a fishing boat.
In business, it is just an annual, time-consuming exercise that often yields little more than a hammer for your manager to use to justify declining your conference request.
Or it becomes a tool for the sales manager to stir up the sales force that hasn’t “made their numbers”. I am willing to go out on a limb and say that those budgets probably follow the traditional process of “last year + 10% on revenue and 5% on expenses” method. They are just meaningless numbers on a spreadsheet.
The short answer is kind of.
But then this would be the shortest article ever written probably, and some folks might not find “kind of” to be a very fulfilling answer to the question posed.
Over my 15+ years of experience in the Enterprise Resource Planning (ERP) world I’ve worn many hats and done everything from management to consulting to sales engineering, and I have to say that the term "Silos of Data" is probably one of the most commonly used analogies in the business.
It’s especially used pervasively in white papers and sales engagements because the visual image that literal silos full of data evokes is frightening to C-level decision makers everywhere!
In my first post in the series on “Asking Why”, we covered how asking why is the key to unlocking business process improvements. So, once you know that it is important to ask why, the next logical question is, “where do we start?”
That’s right, even today, there are companies still new to the Internet, or at least new to figuring out what’s needed to get orders from their website into their Macola Order Entry system. And the reality is, there isn’t a one-size-fits-all solution, but the main considerations for putting your plan together are similar across the board: Customers, Inventory, and Orders.
For manufacturers and distributors, product availability (i.e. inventory) is the driver of almost all revenue-generating activity. Next to fixed assets (property, equipment), inventory represents the biggest outlay of capital.
The great management thinker Peter Drucker has been quoted as saying “you can’t manage what you can’t measure”. True, and if you can’t manage it, you at least need to know what impact it can have on you and your business. But what about the things you can measure?
Then you change one little word and have, “you can’t manage what you don’t measure”. But, just because you can measure something, should you? Does the measurement provide value for the organization?