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    How To Prepare Budgets: Budget To People

    2015/2/11 11:06:00 30

    Compiling SkillsBudgetingFinance

    No matter how it ends up Budget compilation Regardless of the final budget form, only people, that is, only individuals, can actually complete their 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. We should pay attention here. Core issues It is: whose job is this, and what is expected of him. Duty What's this?

    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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    There are three reasons for this:

    (1) first of all, there is no certainty in the shopping malls, there are always unexpected situations, and no prediction is really reliable. Countless cases that can avoid bankruptcy eventually force people to invest enough time to consider the worst and make necessary preparations for such a situation.

    Some people think this is a pessimistic view, so it is useless for enterprises. We should not be misled by such people. It is just responsible management and real leadership. Competent leaders can keep calm in difficult situations. However, only those who are very experienced in dealing with crises, at least those who can foresee such situations, can always remain calm, because they have fully considered this matter, or have made adequate preparations.

    (2) the second reason is that only by preparing the worst-case budgets can we find out which aspects of the enterprises are flexible and what ways to achieve this kind of flexible response. If necessary, these aspects will be able to respond in a timely manner. There have been many articles about the topic of flexibility, which is very reasonable. However, only a few people correctly distinguish the areas that can achieve flexibility, and how to integrate flexibility into the whole enterprise if necessary.

    This requires all business activities to be analyzed and considered. The best way to do this is to make the worst case budgets.

    The worst case varies from enterprise to company. One way is simple and crude, but very effective. If we have to face a 30% drop in sales, what will happen to the company? Sometimes people think it's too much. How could such things happen? In 1990s, people realized that this situation could happen, whether it was caused by the economic environment or the progress of science and technology.

    (3) the third reason for preparing the worst case budget is that it is the best way to comprehensively assess the state of the enterprise and its internal work. After such a drill, we understand the business more deeply than before.


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    The Worst Case Budget Is Essential.

    Competent leaders can keep calm in difficult situations. However, only those who are very experienced in dealing with crises, at least those who can foresee such situations, can always remain calm, because they have fully considered this matter, or have made adequate preparations.

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