Excerpt from www.NDMA.COM, © 2024 N. Dean Meyer and Associates Inc.
Collection of Stories: "Budget Wisdom"
a series of all-too-realistic snippets of corporate life that trace their root cause to financial governance processes
by N. Dean Meyer
[originally published in CIO Magazine]
Budget Wisdom explores (with a sense of humor) the myriad problems that trace back to weaknesses in financial governance processes.
By laughing at these familiar predicaments, we hope these stories will help you see the root causes of common leadership concerns, and positive solutions you can implement to address your own challenges.
"Dean, you're so on target, it's uncanny!
We think you must be snooping around here." |
Bill Paraska
Director, Technology Infrastructure
Georgia State University |
VOLUME ONE: EXPLORING THE PROBLEM
Story: Oh, One More Thing (March 2002)
unfunded mandates -- the business absolutely needs more, but you haven't got the resources to deliver
Story: The Necessary Evil (May 2002)
too busy keeping things running to focus on strategic challenges
Story: Eating Your Seed Corn (June 2002)
unrealistic client expectations force you to sacrifice essential training and infrastructure development
Story: Take It Out of Hide (Sep 2002)
budgets have to be cut, but clients go on expecting all the same deliverables
Story: On the Defensive (Oct 2002)
direct costs are only a portion of the real costs of projects
Story: The Annual Set-up (Jan 2003)
also available in a government version
how a traditional budget process sets organizations up to fail, with client expectations that exceed resources
Story: The Ax is Falling (May 2003)
budget cuts without negotiating reduced expectations set you up to fail across the board
Story: Managing Expectations (Sep 2003)
more on how a traditional budget process leads clients to expect more than can be delivered
Story: Client-driven Portfolio Management (Out On a Limb Alone) (Mar 2004)
you're expected to defend the budget that's really there to benefit your clients, and blamed when you don't get enough
Story: Troubles With Teamwork (May 2004)
how traditional budget processes undermine cross-boundary teamwork
Story: Operational Planning (Oct 2004)
why operational planning, budgeting, and rate setting must be a single, integrated process
Story: Start the Year Out Wrong (Jan 2005)
budgeting is a form of portfolio management
Story: Attempting Portfolio Management (Mar 2005)
why a shift in the budget process is prerequisite to dynamic portfolio management
Story: Another Cut (May 2005)
what staff need to do to arm the boss with data to defend the organization during budget cuts
Story: The Outsourcing Shell Game (August 2005)
how to fairly compare internal IT staff to outsourcing, apples to apples
Story: Begging for Infrastructure (November 2005)
if clients pay for infrastructure as part of they're projects, they'll think they own it
Story: You Cost Too Much (January 2006)
internal IT can appear too expensive if you're comparing apples to oranges
Story: Chargebacks Are Killing Us (July 2006)
how implementing chargebacks can make things worse if you don't have the right tools and methods
VOLUME TWO: POSITIVE SOLUTIONS
Story: No More Games! (October 2006)
how knowing the true cost of your products/services can change the nature of budget negotiations
Story: Our IT Allocation is Too Small! (December 2006)
how to turn the tables and get your internal customers defending your budget
Story: Budgeting Is a Waste!
how standing up for the truth broke the cycle of misery and failure
Story: Budgeting Is a Waste!
Additional Resources
Executive summary of the solution: investment-based budgeting....
Case study: A Budget Aligned with Expectations
a straightforward solution to budgets out of synch with business needs, "do more with less," expectations exceeding resources, lack of perceived value of your function, and more (from an IT department)
Analysis: why integrate business and budget planning....
Implementing an integrated business and budget planning process....
Software to support an integrated business planning and investment-based budgeting process....
Anecdote: why operational planning, budgeting, and rate setting must be a single, integrated process....
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