BudgetPak …  XLerate your budget process BUDGETING IS AS MUCH A COMMUNICATION EXERCISE AS IT IS A FINANCIAL ONE
Pulse Survey Budgeting is as much a  communication  exercise as it is a  financial  one: Strongly agree Somewhat agree Som...
The first budget?
Where are we now?
Widespread dissatisfaction Almost two thirds of 500 CFO Magazine respondents think their planning process is influenced  m...
What can be done?
Pulse Survey Our past efforts to improve budgeting: Have focused on improving the mechanics of the process Have focused on...
Key Definitions Problems to Address Our Recommendations Presentation Outline
Why do we budget?
What is Communication? Sending Receiving Understanding
Efficiency vs Effectiveness
What if nothing changes? Managers not being fully informed of budget decisions and, therefore, not keeping to their budget...
Pulse Survey Who does the budget input?: Finance does the bulk of it. Line managers and department heads do the bulk of it.
Key Definitions Problems to Address Our Recommendations Presentation Outline
Communication as an Excuse?
Lost in Translation Budget Template ?
Language Barriers Impede Communication
Budget Templates Are Poor Communication Tools
Financial Control vs User Flexibility
Pulse Survey What are the top issues that preclude good communication inside your budget system? We don’t let managers tou...
Key Definitions Problems to Address Our Recommendations Presentation Outline
Trivial recommendations =  Think about it Trivial results
1) Active engagement from line managers. 2 Principles 2) We have to understand and meet  their  needs.
Involve your  user community  in solution development. Let managers budget in a way that makes sense to them, but then tra...
Involve your users
Involve your user community in solution development. Let managers budget  in a way that makes sense to them , but then  tr...
You need a Rosetta Stone
You need a Rosetta Stone Strategic Initiatives Marketing Campaigns Events Programs IT Projects, Training Programs, One-Offs
Involve your user community in solution development. Let managers budget in a way that makes sense to them, but then trans...
Justification & Detail Leases
Involve your user community in solution development. Let managers budget in a way that makes sense to them, but then trans...
Flexibility AND Control Confidence Credibility
There is no “silver bullet” but there are best practices. Recorded presentation will be made available. We have a free, Bu...
www.XLerant.com 203/328-3787
Warehouse slides beyond this point
The end of the spreadsheet mindset
XLerant, Inc.
Financial Control vs User Flexibility
Justification & Detail Software Maintenance Agreements
Ted Notes
Pulse Survey Do you believe your current budget system is <primarily> for you or for your business users (really). I...
Example Production Costs Talent Television Advertising Professional Fees 2010
Training
Efficiency vs Effectiveness
Lost in Translation
Lack of Training Budgeting 101
What can be done?
Key messages of webinar Budgeting is as much a communication exercise as it is a financial one Excel is not the right tool...
Request copy of this presentation Attend next week’s demonstration Schedule a 10 minute call Schedule a private demo Next ...
What should we change?
What is Communication? Sending Receiving Understanding
BudgetPak …  XLerate your budget process BUDGETING IS AS MUCH A COMMUNICATION EXERCISE AS IT IS A FINANCIAL ONE For those ...
What is Communication? Sending Receiving Understanding
You need a Rosetta Stone MASTER TEMPLATE INITIATIVE
What’s the purpose of a budget? Why do we do it? What do we mean by “communication” Efficiency vs Effectiveness Business i...
What’s the purpose of a budget? Why do we do it? What do we mean by “communication” Efficiency vs Effectiveness Business i...
Let managers budget in a way that makes sense to them, but then translate “manager speak” into “accounting speak” (think R...
Flexibility AND Control USERS WANT FINANCE WANTS “ Budget for initiatives, projects,  events, etc.” All special spending s...
Flexibility AND Control USERS WANT FINANCE WANTS “ Create a budget for an account by buildit  it up (example: Software Mai...
Flexibility AND Control USERS WANT FINANCE WANTS “ To be able to play around with multiple “sandbox” versions of their bud...
You need a Rosetta Stone Strategic Initiatives
You need a Rosetta Stone Marketing Campaigns
You need a Rosetta Stone Events
You need a Rosetta Stone Programs
You need a Rosetta Stone IT Projects, Training Programs, One-Offs
Involve your users
What can be done?
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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

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Transcript of "XLerant Webinar On Budgeting And Communications"

  1. 1. BudgetPak … XLerate your budget process BUDGETING IS AS MUCH A COMMUNICATION EXERCISE AS IT IS A FINANCIAL ONE
  2. 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. 3. The first budget?
  4. 4. Where are we now?
  5. 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. 6. What can be done?
  7. 7. Pulse Survey Our past efforts to improve budgeting: Have focused on improving the mechanics of the process Have focused on improving communications
  8. 8. Key Definitions Problems to Address Our Recommendations Presentation Outline
  9. 9. Why do we budget?
  10. 10. What is Communication? Sending Receiving Understanding
  11. 11. Efficiency vs Effectiveness
  12. 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. 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. 14. Key Definitions Problems to Address Our Recommendations Presentation Outline
  15. 15. Communication as an Excuse?
  16. 16. Lost in Translation Budget Template ?
  17. 17. Language Barriers Impede Communication
  18. 18. Budget Templates Are Poor Communication Tools
  19. 19. Financial Control vs User Flexibility
  20. 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. 21. Key Definitions Problems to Address Our Recommendations Presentation Outline
  22. 22. Trivial recommendations = Think about it Trivial results
  23. 23. 1) Active engagement from line managers. 2 Principles 2) We have to understand and meet their needs.
  24. 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. 25. Involve your users
  26. 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. 27. You need a Rosetta Stone
  28. 28. You need a Rosetta Stone Strategic Initiatives Marketing Campaigns Events Programs IT Projects, Training Programs, One-Offs
  29. 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. 30. Justification & Detail Leases
  31. 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. 32. Flexibility AND Control Confidence Credibility
  33. 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. 34. www.XLerant.com 203/328-3787
  35. 35. Warehouse slides beyond this point
  36. 36. The end of the spreadsheet mindset
  37. 37. XLerant, Inc.
  38. 38. Financial Control vs User Flexibility
  39. 39. Justification & Detail Software Maintenance Agreements
  40. 40. Ted Notes
  41. 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. 42. Example Production Costs Talent Television Advertising Professional Fees 2010
  43. 43. Training
  44. 44. Efficiency vs Effectiveness
  45. 45. Lost in Translation
  46. 46. Lack of Training Budgeting 101
  47. 47. What can be done?
  48. 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. 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. 50. What should we change?
  51. 51. What is Communication? Sending Receiving Understanding
  52. 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. 53. What is Communication? Sending Receiving Understanding
  54. 54. You need a Rosetta Stone MASTER TEMPLATE INITIATIVE
  55. 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. 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. 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. 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. 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. 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. 61. You need a Rosetta Stone Strategic Initiatives
  62. 62. You need a Rosetta Stone Marketing Campaigns
  63. 63. You need a Rosetta Stone Events
  64. 64. You need a Rosetta Stone Programs
  65. 65. You need a Rosetta Stone IT Projects, Training Programs, One-Offs
  66. 66. Involve your users
  67. 67. What can be done?
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