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    Budget: Business Budget And Innovation Budget

    2015/2/9 22:43:00 22

    BudgetBusiness BudgetInnovation Budget

    (1) the first budget is the standard budget, that is, the business budget. This budget is aimed at the existing business, which are all familiar and familiar business. In such a budget, although we can not only deduce the past based on the past, the past and present data are useful, or at least some reliable reference data. The key question involved in this budget is: what is the minimum amount of resources needed to successfully maintain the business operation? In this budget, the traditional enterprise management thinking method is applicable and correct.

    (2) the second budget is the opportunity budget. Unfortunately, only a very small number of enterprising enterprises will formulate it. The object of this budget is new things, namely innovation.

    This budget will not be based on concerns. experience The data, because for new things, there is no experience to follow. Since this budget contains many important uncertainties, it can not be integrated into other conventional budgets. First of all, this will weaken the effect of the business budget; secondly, in the business budget, the uncertainty of opportunity will also become ambiguous.

    In the opportunity budget, we must pay attention to two questions: first, are the resources we use are suitable for opportunities and innovations? Second, if so, if we want to really grasp them, Opportunity And what is the maximum amount of resources needed to achieve great success?

    "Too little resources, too late to allocate, and apportionment in too many departments" is the main reason for the failure of many good and very important public projects, and it is also true for business projects.

    In the sense of metaphor, the motto of Guderian, general of German tank forces in the Second World War, "do not disperse resources", gave the key to the success of new projects. That is to say, we should concentrate all our efforts on a few things and fully ensure their implementation.

    Such a dilemma: how much should we consider and consider budgetary entries?

    Therefore, it is valuable to consider the following questions: is the budget item of only 10% to 20% of the proportion important? budget Will entries affect other items?

    In general enterprises, it is of little significance to make detailed budgets for postal and telephone charges. However, in the enterprises engaged in mail order business, the cost of postal delivery and the number of times used are crucial budgetary entries. For most companies, the use of space is not important. For supermarket chains, however, it is a key budget item.

    In 1920, GM led by Alfred Sloan introduced the key item budget and was further improved in the US Department of defense in 1960s. In millions of budget entries, we have only found hundreds of really important entries.

    By the way, the financial budget of key items is also the basis for proper application of exception management. Although we seldom talk about exception management these years, this does not mean that it is of little use.

    No matter how to prepare the budget in the end, and no matter what form of budget it takes, only people, that is, only individuals, can actually complete the work. Although people often say that people are the most important resources, we often neglect this. Money spent on employees (personnel costs) is subject to budget, but employee performance is not the case.

    After the final analysis, only one resource can create performance, that is, people. Like other parts of the book, we do not refer to people in general, but to employees.

    If there is no name of the person attached to the budget (the name is the name of the person in charge), it will not be effective. If possible, every budget item should be specific to the person. The core issue that should be concerned here is: whose work is this, what is the expected result and what is his responsibility?

    The most important tool in this area is task control. We have analyzed this tool in the preceding chapters of this article. Therefore, our budget arrangement is mainly not cost, but everyone's advantage. This is the only way to ensure that the work is carried out and the final implementation is successful.


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