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We’re mid-Q3, are you achieving your plan?

August 19th, 2008 Comments off

I apologize in advance for republishing an earlier white paper, but I felt that this one was worth revisiting considering recent conversations about Finance departments and their staffing levels. I am continuing to hear from my peers, as well as recruiters, that departments are being run extremely lean. With this in mind, it becomes even more necessary to keep our groups motivated and focused on the task at hand. When the targets for hitting our annual plans are those home runs that take the better part of a year to achieve, it becomes harder to keep teams focused, and should those goals not be met, almost instills a sense of failure within the group. Something we can certainly do without in this demanding environment.

I would also have to assume at this point that most organizations have already achieved their “big hits” over the last year since we really started to see the current slowdown in the latter part of Q3 last year. If you’re a company with a revenue range of $200 million and OpEx in the $50 million range, and you want to trim 5% from you expenses, where do you begin? For starters, you not only need to trim the 5%, but you also need to counter the inflationary impact on salaries, insurances, and other variables. However, if you start breaking that $2.5 million down into smaller increments, it becomes much more achievable and manageable. You can also keep the team motivated as you check off the incremental goals achieved through the year.

Depending on how efficient your entity is operating, those incremental savings might pose a significant challenge if your company is seeing significant growth, which then comes down to evaluating whether you’re leveraging your OpEx. In that situation, what would your Budget look like if viewed on a constant basis year over year? Winning the “Budget Game” is about consistent base hits and keeping our teams motivated.

Thanks for reading . . . .

Achieving your plan with Base Hits