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Budget Approved. Now what?

Written by:  Matt Dionne, Managing Partner TYGES Elite

budgetThis is the time of the year when most business leaders have their budgets approved and are now reviewing last month’s progress toward their new annual goals. Many leaders will learn that the actual results are not achieving the year-to-date goals after just one or two months. “How can this be?” you might ask.

“How can we be off target so early in the year that has just begun.”

This can be due to a number of reasons including:

  • Poor Assumptions
  • Changes in Market Conditions
  • Unplanned Negative Events
  • Lack of Resources
  • Errors in budget modeling like linear budgeting without seasonal effects

However, sometimes budgeted results are missed due to ineffective actions which result from poor implementation and poor execution.

In my past, I have seen many business plans that were well designed with great actions. However, the execution of those actions did not deliver the expected results. Often this was due to the lack of initiative, foresight, planning, urgency or skill set from those responsible for the actions.  As leaders, we focus on the why, what, when, and how much to spend on the planned actions.  invest5However, we do not spend enough time on who will be doing the actions and do they have the leadership, experience, and skill set for the planned actions.

Improving results dependent on people requires an investment in people.

Such investments include reassigning your best employees to new roles, providing training to those in the roles, or acquiring the required talent to drive the new actions.  Having the leadership talent to achieve planned improvements is something equally important to the actions themselves and deserves more time and planning.

So, as you review your business results to your budgeted plans, ask yourself if you have the leadership talent to achieve your planned success. If not, it’s time to take action on WHO will be driving your business actions.

I encourage your feedback and would enjoy the opportunity to provide you the resources for a top tier performing team.  You can find me on LinkedIn and you can learn more about my team and company here.  Also, you can learn more about TYGES by following us on Twitter @TYGESInt or here on our blog.

Our mission is simple:

We’re here to make good things happen to other people.

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