The Budget Bump

One tip: How to manage the “Budget Bump”

“We’ve always booked those costs to maintenance. They have the biggest budget.” “We can’t book those costs there. They don’t have a budget.” Do these sound familiar?

When your measures focus on one area or department, you risk encouraging a silo mentality. This is where departments will work in isolation. They will act in their best interests. They operate in their own silo.

The more ambiguous the budget target, the more likely your people are going to “bump” their costs to other areas.

To remove this budget band-aid you need to bring your areas together to review budget performance. In my experience, a framework that everyone uses on a regular basis works best.

Then ask your people “how can we help each other?”

 You will maximise results if everyone is working towards a common goal or objective.

You can download the tip sheet here.

One sporting stat

For the first time in history, FIFA will allocate players individual fees at the Women’s Soccer World Cup currently underway in Australia and New Zealand.

The remuneration starts at US$30,000 per player and rises with each stage of the tournament. The winning team’s players will receive US$270,000 each.