Archive | financials

The Downside of Downsizing

Years ago, I took a class called “Managing With Influence” from Jeffrey Pfeffer, professor of organizational behavior at Stanford University and author of the book subtitled “Profiting from Evidence-Based Management.” During the class, Professor Pfeffer claimed layoffs do not improve financial performance – except in the very short term. He based this on a careful analysis of…

Continue Reading 13

The Upside of the Downturn

As a sound bite example of the Upside of the Downturn, Geoff Colvin suggested that death rates go down in a recession.  Regardless of the accuracy of the claim, it’s worth remembering that the recession provides new opportunities for companies willing to take risks.  To emphasize this point, Colvin subtitled his book “Ten Management Strategies to…

Continue Reading 0

Better Planning and Budgeting

Over at Intelligent Enterprise, an article entitled “How to Get to Better Planning and Budgeting” provides five questions every finance organization should ask: Is the planning and budgeting process as strategic as it could be? Are the budgets as accurate as they should be? Does your planning really help increase your company’s agility? Could your…

Continue Reading 2

Planning vs. Budgeting

Openly, I get annoyed when people use the term planning to describe budgeting. While the terms planning and budgeting are often used interchangeably, they’re not the same thing. Budgeting is how you allocate resources (typically financial) to reach specific objectives. Budgeting helps you create an estimate of income and expenses for a specific time period. Budgeting manages money…

Continue Reading 1