Setting goals, creating budget, and defining the details is easier but putting things in practice is the real and most difficult task that needs to be achieved.
After all the planning and putting things on paper, the question that arises is, ‘how to hold the divisions/department accountable for the decided-upon plans’
Units/Divisions having a say in the budgeting process is a norm and the budgets are realistic still the divisions do not take ownership and blame the higher management when things go awry.
During the budgeting process the division/department head needs to be involved. After that process ends, what are the ways to hold them accountable and motivated??
Set framework and expectations: You need to set clear milestones and keep a track of it. Success of any company depends on the collective purpose and focus. For this you need to clearly define the processes, goals, and expectations. What need to be done, when it needs to ne done and quality yardsticks for the same need to be defined.
Inspire sense of responsibility: Accountability is a state of being answerable and not a process or tool. So, its a choice for any employee to make to be answerable for the results of his work. You can inspire employees and instil the feeling of responsibility by involving them by taking feedbacks and giving inputs and giving them a say. When the employees feel that their opinions and thoughts have a direct effect on the company the sense of responsibility increases.
When the connection between the goals and organizational and personal growth are established, the commitment to achieve these goals increases and the processes are followed diligently.
Clearly express consequences: Here consequences does not mean penalty or punishment rather it is possible outcomes of lagging process steps like in case reports are not on time then whether it will be left blank or committed target will be filled. This is particularly important to remain on track and stay uncluttered. It acts as a guide for the division heads and also helps them remain focussed on their commitment.
Educate non-finance employees about budgeting and finance: Finance department should act as a resource for the non-finance employees i.e. these employees should be educated to develop understanding of financial matters. This helps in disseminating information which in turn assists in understanding budgeting goals and plans and supports company’s growth and progress.
Measure Progress: Regular monitoring of progress is required to gauge whether the heads are able to meet the goals and expectations or not and what could be the reasons for not achieving the target and also devise corrective/alternate measures. This helps in timely check of things related to finances and rectification o problems in time.
Financial management is a daunting task as it encompasses all the departments and the whole company. So, financial advisory services are the best help in managing financial crises and maneuver the tight spots as these agencies provide you with financial modelling and financial analysis along with financial forecasting to help you take sound decisions. They give you CFO services along with accounting and bookkeeping. All the data analysis is done for you to take decisions accordingly.