For several years, I’ve argued that performance management is more than just budgeting. I’ve also pointed out that the term planning was often misused by software vendors whose products were mostly limited to financial planning (aka budgeting), rather than end-to-end resource allocation and management. And finally, I’ve advocated outcome-based budgeting, rather than activity-based budgeting, so…
Tag Archives | financials
Better Planning and Budgeting
By Jonathan Becher on June 23, 2008 in alignment, financials, metrics, performance management, planning, strategy management
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…
Trusted Information
By Jonathan Becher on May 11, 2008 in Business, financials, key performance indicators, performance management, strategy
I was deep in conversation with an executive about how to make scorecards more actionable when he said something like: I understand that I should focus on KPIs that are red and trending down but, honestly, I don’t trust the data. This is perhaps the true Achilles Heel of Performance management. If end users don’t trust…
Planning vs. Budgeting
By Jonathan Becher on April 23, 2008 in alignment, comics, financials, performance management, planning, strategy
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…
The Risk of Spreadsheets
By Jonathan Becher on February 21, 2008 in financials, metrics, performance management, risk, sap, vendors
Unless you were trapped on a desert island over the last few months, it’s unlikely that you missed the Société Générale scandal and the resulting teeth-gnashing about the need for stricter controls and oversight in the financial services industry. While I’m all for better access and process controls leading to improved segregation of duties, I…