Episode 72: The Critical Steps Commonly Missed in Planning and Budgeting

In this follow up podcast to Episode 71, Sam continues the conversation on Strategic Planning, delving into the second stage of planning and budgeting. With a practical approach and clear language, Sam challenges the listener to rethink the budget process and drive change through more effective planning.

It’s often said that the only thing that is constant is change. In a world of disruption, this have never been more true and yet in most corporate entities the annual business plan aims to set the next year’s targets based on what’s gone before. Sam breaks down the elements of planning and questions how we can continue to budget based on what we’ve always done, when part of the equation, being client driven revenue, is out of our control.

By questioning our relationship with budgeting, Sam highlights the safety in the traditional spreadsheet and the pitfalls of focusing on costs and capacity. Taking an holistic approach, this podcast will step through the planning process and identify how it links back to the Strategy. Sam looks at what budgets are good for, while recognizing the steps that need to be included in order to drive change and more effective outcomes.

Including a practical example of how better planning has achieved stronger results, this podcast is a clear roadmap for the second stage of the Strategic Planning process.

Listen to an excerpt

What we cover in this episode

●       The three stages of Strategic Planning

●       Defining and differentiating planning and budgeting

●       The key elements of planning

●       How to plan for change

●       The problem with budgeting

●       How to rethink the budgeting process and drive a better outcome

●       A practical example of the difference between planning and budgeting, and how they interact to drive results

Quotes

“Strategy is simply, where do you want to be … where are you now, and what would it take to get there, and is it realistic”.

“This element is missed out of planning. Any kind of change needs a behavior change or a mindset change. We don’t plan that.”

“We have to believe in the Strategy, so if there’s any kind of doubt on that you also have to look at why”.                                  

“When we look at budgets, the only thing they’re really good for, and we’re fantastic at it, is costs, because we can actually control costs”.

“Plans have to be flexible, you have to be always looking at them and revising them throughout to see that they are still going in the direction, they do knock off course”.

“We planned what we wanted, and then the revenue came”.

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