My management team knows, I enjoy starting every meeting with a quote and why not continue that tradition with this memo. Benjamin Franklin stated, “If you fail to plan, you are planning to fail”. In order to mitigate the risk of failure in business, one of the valuable tools we can utilize as a company is a budget. Since I took over as CEO, I stressed the importance of budgeting in planning and measuring of our successes and areas for improvement.
I realize the budget development is labor intensive, but here are a few of the benefits of the budgeting process:
• Improved preparation and communication
• Accurate tracking of actual versus intended performance
• Superior measurement of department performance and objective forecasts
• Enhanced …show more content…
The worst offense, we commit as leaders within our company are to point fingers. At our company, I hope you comprehend our budget allows us to converse regarding where we can improve and what needs to change. Input and feedback from employees are vital to achieving our organizational goals and be successful as a company. Please do not believe your idea or contribution is not imperative, we need buy-in from all levels of our company.
I need to address a phenomenon I observe each year, an increase in spending across the board towards the conclusion of the year. All budget managers fear a reduction in their budget if their allocated amount is not consumed. The problem is these investments are generally not in the essential areas of our business. I understand and hear your concerns and effective immediately we are changing the way we budget to eliminate inefficient spending. We are moving to a revolving fund budget.
This budget allows funds to roll from one year to the subsequent without explanation and save for unforeseen future expenses. It will benefit us in three ways:
• Acquire a long-term approach and have added
I realize the budget development is labor intensive, but here are a few of the benefits of the budgeting process:
• Improved preparation and communication
• Accurate tracking of actual versus intended performance
• Superior measurement of department performance and objective forecasts
• Enhanced …show more content…
The worst offense, we commit as leaders within our company are to point fingers. At our company, I hope you comprehend our budget allows us to converse regarding where we can improve and what needs to change. Input and feedback from employees are vital to achieving our organizational goals and be successful as a company. Please do not believe your idea or contribution is not imperative, we need buy-in from all levels of our company.
I need to address a phenomenon I observe each year, an increase in spending across the board towards the conclusion of the year. All budget managers fear a reduction in their budget if their allocated amount is not consumed. The problem is these investments are generally not in the essential areas of our business. I understand and hear your concerns and effective immediately we are changing the way we budget to eliminate inefficient spending. We are moving to a revolving fund budget.
This budget allows funds to roll from one year to the subsequent without explanation and save for unforeseen future expenses. It will benefit us in three ways:
• Acquire a long-term approach and have added