Page 145 - Budgeting for Managers

Budgeting for Managers
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will find the money, approve the reduced work plan, or sit down
and work with you to make the best choices. Take the approach
of not blaming anyone, being reasonable, and being fair and see
if they come along with you. If they do, great!
What do you do if they say, “No! Just make it work with
what you’ve got and make sure you get all the work done.”
Clearly, they’re not being reasonable. Still, there’s no reason for
you to become unreasonable. You might try this: “I’m going to
do the best job anyone can managing this department and I’ll
deliver results for the company. I’d be happy to do an even bet-
ter job. If you see how what you want is possible, then I must be
missing something. Show it to me and I’ll learn.” At that point,
they are most likely to sit down and work things out with you.
Some executives, however, never learn. Some companies
have a dysfunctional corporate culture that keeps doing things
in ways that just don’t work. This discussion may just end with
“Here’s the budget; make it work.” If so, don’t despair. You’re
not the only manager in this company. Find another manager
who is doing well. Take your colleague to lunch. Ask how he or
she handles it. You may hear something like “Oh, it all blows
over. In October, they run around and find extra money some-
where and things work out. This happens every year.” Or, at
another company, you may hear, “Well, just cut costs and do
the best work you can. The productivity numbers don’t matter
much to the bean counters. But whatever you do, don’t over-
spend your budget.”
Please realize, we’re not recommending these management
approaches. But we want you to do the best job you can in your
specific situation. If you stick with the program and do well,
then you may gain influence over the years. Once you do, you’ll
be able to bring a more rational approach to your company’s
businesses methods of managing and budgetary planning.

Setting up Your Budget with Accounting
Accounting procedures vary a great deal. In this section we’ll
discuss some of the typical steps that occur when a budget is