Path to collaborative budget

Building a budget isn't solely up to the finance department—it's an all-hands-on-deck effort. As we dive into the numbers, it's crucial to remember that everyone's input counts.

Ever hit a snag halfway through the year and thought, "Where did that come from?" It's all about connecting the dots and getting everyone on board.

In this edition of The Finance Fix, we're zeroing in on collaboration. I've gathered some practical tips and resources to ensure every department contributes effectively, making your budget more accurate and reliable.

Happy planning,
Christina

The big idea: building better budgets

Budgeting can often feel like a solo mission, but the best budgets are built together.

There's just one problem: how can you ensure everyone is on the same page? This is where OKRs can make a huge difference. As the glue that bonds different departments together, OKRs unite everyone with a clear vision and pave the way for budgeting success.

For an in-depth look at OKRs and how they can help you take collaborative budgeting to the next level, download Strategy to success: Aligning OKRs & financial planning today.

Quick tips for ensuring effective collaboration during the budgeting process:

1. Show, don't tell.

Instead of just presenting numbers, use data visualization tools to create interactive budget dashboards. Share these with department heads, encouraging them to engage directly with the data. The real-time nature of interactive dashboards allows department heads to instantly see the effects of potential budget adjustments. This means faster iterations and real-time discussions, reducing the error-prone back-and-forth that can slow down the budgeting process.

2. Encourage transparency.

Budgeting may bring out strong opinions about the path the company takes or the most likely activities to produce results. As part of transparency efforts, encourage a culture of communication among and through the org chart. Provide channels and points of contact for individual contributors to discuss proposed or upcoming change. Use data forms or surveys as a way to collect information, hear alternate perspectives, and identify unforeseen outcomes before a budget activity is put into practice.

3. Initiate a feedback loop.

Collaboration shouldn't end when the budget is approved. Set up regular feedback sessions with department heads post-approval. By collaboratively analyzing what worked and what didn't, you not only refine the process but also foster a sense of collective responsibility and learning for future budget cycles.

Top 3 resources you can't afford to miss:

1. Top 5 questions to ask budget owners to ensure accuracy

Budgets drive a company's future—and as a finance leader, it's your job to ensure the roadmap is accurate. This blog reveals the top 5 questions you should ask budget owners to elevate your budgeting precision (and make every dollar count).

2. 19 ways finance leaders can foster cross-departmental collaboration

This Forbes article explores how forging strong connections across the organizational spectrum helps finance leaders unlock hidden insights, refine their business case methodologies, and set their initiatives on a trajectory toward success.