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XLerant Webinar On Budgeting And Communications

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Solid presentation on how to improve communications in the budget cycle

Solid presentation on how to improve communications in the budget cycle


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Transcript

  • 1. BudgetPak … XLerate your budget process BUDGETING IS AS MUCH A COMMUNICATION EXERCISE AS IT IS A FINANCIAL ONE
  • 2. Pulse Survey Budgeting is as much a communication exercise as it is a financial one: Strongly agree Somewhat agree Somewhat disagree Strongly disagree
  • 3. The first budget?
  • 4. Where are we now?
  • 5. Widespread dissatisfaction Almost two thirds of 500 CFO Magazine respondents think their planning process is influenced more by politics than by strategy. “ What best explains the lack of value in your planning process?” Lack of a well defined strategy Lack of a clear linkage of that strategy to the budget Lack of individual accountability for results Source: The Buttonwood Group, LLC and CFO Magazine
  • 6. What can be done?
  • 7. Pulse Survey Our past efforts to improve budgeting: Have focused on improving the mechanics of the process Have focused on improving communications
  • 8. Key Definitions Problems to Address Our Recommendations Presentation Outline
  • 9. Why do we budget?
  • 10. What is Communication? Sending Receiving Understanding
  • 11. Efficiency vs Effectiveness
  • 12. What if nothing changes? Managers not being fully informed of budget decisions and, therefore, not keeping to their budgets. Department level lack of budget responsibility. I didn't know we were making cuts...Where are my positions? Lack of alignment Budget plans not aligned with mission Budget accuracy is not in control; 'fire drill' type of reactions to issues identified too late to be effectively addressed, etc Dissatisfaction with overall process & lack of resources in budget. Not everyone pulling in the same direction. Missed objectives... No alignment between the teams Just making sure everyone is on the same page and understands the numbers Lack of ownership & Accountability Poor budget decisions Strategic planning is not linked to resource allocation
  • 13. Pulse Survey Who does the budget input?: Finance does the bulk of it. Line managers and department heads do the bulk of it.
  • 14. Key Definitions Problems to Address Our Recommendations Presentation Outline
  • 15. Communication as an Excuse?
  • 16. Lost in Translation Budget Template ?
  • 17. Language Barriers Impede Communication
  • 18. Budget Templates Are Poor Communication Tools
  • 19. Financial Control vs User Flexibility
  • 20. Pulse Survey What are the top issues that preclude good communication inside your budget system? We don’t let managers touch the system to begin with. They use the system but they don’t know what they’re doing. Inflexible - too many lock downs in the system. Nothing in the system to help users provide their rationale.
  • 21. Key Definitions Problems to Address Our Recommendations Presentation Outline
  • 22. Trivial recommendations = Think about it Trivial results
  • 23. 1) Active engagement from line managers. 2 Principles 2) We have to understand and meet their needs.
  • 24. Involve your user community in solution development. Let managers budget in a way that makes sense to them, but then translate “manager-speak” into “accounting-speak”. Make it easy for managers to provide assumptions, explanations and detail (the business rationale) and have the system capture and report it. Balance Finance’s need for control with flexibility for the users. Recommendations
  • 25. Involve your users
  • 26. Involve your user community in solution development. Let managers budget in a way that makes sense to them , but then translate “manager-speak” into “accounting-speak”. Make it easy for managers to provide assumptions, explanations and detail (the business rationale) and have the system capture and report it. Balance Finance’s need for control with flexibility for the users. Recommendations
  • 27. You need a Rosetta Stone
  • 28. You need a Rosetta Stone Strategic Initiatives Marketing Campaigns Events Programs IT Projects, Training Programs, One-Offs
  • 29. Involve your user community in solution development. Let managers budget in a way that makes sense to them, but then translate “manager-speak” into “accounting-speak”. Make it easy for managers to provide assumptions , explanations and detail (the business rationale) and have the system capture and report it. Balance Finance’s need for control with flexibility for the users. Recommendations
  • 30. Justification & Detail Leases
  • 31. Involve your user community in solution development. Let managers budget in a way that makes sense to them, but then translate “manager-speak” into “accounting-speak”. Make it easy for managers to provide assumptions, explanations and detail (the business rationale) and have the system capture and report it. Balance Finance’s need for control with flexibility for the users. Recommendations
  • 32. Flexibility AND Control Confidence Credibility
  • 33. There is no “silver bullet” but there are best practices. Recorded presentation will be made available. We have a free, Budget Intelligence Assessment (BIA) to help you define you requirements and areas of improvement. Wrap Up/ Q&A
  • 34. www.XLerant.com 203/328-3787
  • 35. Warehouse slides beyond this point
  • 36. The end of the spreadsheet mindset
  • 37. XLerant, Inc.
  • 38. Financial Control vs User Flexibility
  • 39. Justification & Detail Software Maintenance Agreements
  • 40. Ted Notes
  • 41. Pulse Survey Do you believe your current budget system is <primarily> for you or for your business users (really). It’s for primarily for me It’s primarily for my business users
  • 42. Example Production Costs Talent Television Advertising Professional Fees 2010
  • 43. Training
  • 44. Efficiency vs Effectiveness
  • 45. Lost in Translation
  • 46. Lack of Training Budgeting 101
  • 47. What can be done?
  • 48. Key messages of webinar Budgeting is as much a communication exercise as it is a financial one Excel is not the right tool. The ownership and accountability has got to be with tth users There is a path to success
  • 49. Request copy of this presentation Attend next week’s demonstration Schedule a 10 minute call Schedule a private demo Next Steps www.XLerant.com 700 Canal Street Stamford, CT 06902 203/328-3787
  • 50. What should we change?
  • 51. What is Communication? Sending Receiving Understanding
  • 52. BudgetPak … XLerate your budget process BUDGETING IS AS MUCH A COMMUNICATION EXERCISE AS IT IS A FINANCIAL ONE For those who know there’s something wrong
  • 53. What is Communication? Sending Receiving Understanding
  • 54. You need a Rosetta Stone MASTER TEMPLATE INITIATIVE
  • 55. What’s the purpose of a budget? Why do we do it? What do we mean by “communication” Efficiency vs Effectiveness Business implications of poor budget communication What are the problems we need to overcome? What changes are needed? Wrap Up/ Q&A Presentation Outline
  • 56. What’s the purpose of a budget? Why do we do it? What do we mean by “communication” Efficiency vs Effectiveness Business implications of poor budget communication Why are the problems we need to overcome? What changes are needed? Wrap Up/ Q&A Presentation Outline
  • 57. Let managers budget in a way that makes sense to them, but then translate “manager speak” into “accounting speak” (think Rosetta Stone). Make it easy for managers to provide assumptions, explanations and detail (the business rationale) and have the system capture and report it. Balance financial control with end user flexibility. Break the spreadsheet mindset. Best practices for improving communications in the budget process
  • 58. Flexibility AND Control USERS WANT FINANCE WANTS “ Budget for initiatives, projects, events, etc.” All special spending should automatically feed into a department’s overall budget without having to write Excel formulas like = Link Everything’s got to properly tie out Must be able to see the initiative spending discretely, but then see the entire department budget.
  • 59. Flexibility AND Control USERS WANT FINANCE WANTS “ Create a budget for an account by buildit it up (example: Software Maintenance by vendor).” 100% assurance that the detail adds up properly (e.g. the summation of the detail is accurate) 100% assurance that by adding line item detail, no other calculations were broken
  • 60. Flexibility AND Control USERS WANT FINANCE WANTS “ To be able to play around with multiple “sandbox” versions of their budget before deciding on which one to submit for formal review and approval.” One version of the truth “ No debate” on which version was submitted as final
  • 61. You need a Rosetta Stone Strategic Initiatives
  • 62. You need a Rosetta Stone Marketing Campaigns
  • 63. You need a Rosetta Stone Events
  • 64. You need a Rosetta Stone Programs
  • 65. You need a Rosetta Stone IT Projects, Training Programs, One-Offs
  • 66. Involve your users
  • 67. What can be done?