What are the 7 stages of developing your budget with your team?
How do you take your budget from concept to successful execution within your organisation?
The success of your new organizational budget will depend on the engagement of your team
These are the 7 key stages of engaging with your team as you develop your budget for the next year of success and growth together:
- Planning: plan the budget process in advance including all role players, the decision-making process and relevant milestones to ensure that your team know their involvement in advance.
- Strategizing: define and agree on the strategy in terms of the desired outcome (results for the budget) and the approach that will be used to achieve those outcomes with your team.
- Preparation: the planning stage should have identified what preparation is required by which individuals and or teams in terms of past, present and future activities and numbers and when this is required at each stage in the budget process.
- Implementation: complete the process of compiling, reviewing, refining and approving all of the elements of the budget in their various section as well as from an aggregated perspective with your team.
- Communication: once the budget is approved, the relevant sections should be communicated and reviewed with the individuals and teams organisation-wide that will need to deliver on the budget.
- Reporting: regular reporting (at least monthly) is key on revenue and expenses to track progress (actuals) against the budget and resolve the impact of any variations
- Motivations: as the year progresses, recognize the successes your team has achieved in terms of the budget with appropriate acknowledgment and reward. More positive feedback will encourage more engagement across your organization on the budget and your success.