Empowered efficient budget management
The following diagram sets out the key elements needed to achieve empowered, efficient budget management.
You must know your budget inside and out. This means understanding the assumptions that underpin it. For example, if you receive government funding, do you know how the government calculates how much you should get and how this is increased (i.e. percentage of CPI) or controlled (productivity dividend).
It means understanding how activity and staff management impacts on your budget and how you can influence this.
It’s knowing where to look when you exceed your budget and what to do about it.
As managers we can only do this if we have access to good reporting and data. Data is key. This enables you to monitor your budget closely and ensure that you are a good steward of the resources entrusted to you.
Finally all this information enables you to improve your management of resources. It is only possible to achieve success through collaboration – with other units, the supply department, the finance department – this is not something you can do on your own – it’s a team effort.
- Which of these elements do you feel you are already strong in?
- Which do you need more work on?