But it’s not always that simple. The budgeting and planning process can be fraught with internal politics and inter-departmental conflict.
Your team leads may create budgets aimed at maximising their funding — rather than reflecting their actual needs. Others may be reluctant to engage with the budgeting and planning process, avoiding supplying numbers or doing the bare minimum to keep the finance team happy. As a result, your budget may be bloated and inaccurate, without the detailed information you need to plan effectively.
It all comes down to transparency and engagement.
If there’s no overall view of business data and budgeting details, it’s easy for business units to fly under the radar and avoid being held accountable. And if your team leads struggle to understand or engage with their budgeting tools, they’re unlikely to truly engage with the budgeting process and deliver the information you need.