Own Your Budget – Use it or lose it

And the importance of decision making as a budget owner

As cost pressures continue for most organisations, the ability to pass through these costs to the end customer is shrinking. Spending money in the right areas, and on the right things becomes critical.

As some of you approach the final three months of a financial year (ending June 30), the pressure to spend your allocated budget intensifies.

“If you don’t spend the money this year, we will give it to someone else to spend next year.”

Does this sound familiar?

“Spend now” becomes the focus of decision making. It’s like a cash splash. Priorities become skewed. The risk of spending money in the wrong areas is high. The impact of this will be felt in future budget conversations you have with management.

But it doesn’t have to be this way.

When spending decisions are made in your organisation, you should be asking:

“How much value will this create?”

And if your spending programs are delayed, you should call them out as soon as possible.

Own your budget so it doesn’t own you.

PS: Are you ready to start owning your budget? Let’s have a chat

One sporting stat

Liberty Media, the owners of Formula 1, announced a deal this week to buy the top motorcycle racing series (MotoGP) for $US4.5 billion.

Joe Pompliano breaks it all down in this great piece.