Wednesday, August 26, 2009
There is a trend blossoming in and among nonprofit and profit firms alike where the firm is getting innovative and creative when building and establishing budgets during this economic downturn. In order to make intelligent management decisions, savvy CEOs and CFOs are building quarterly budgets that position the firm to make quick, positive and decisive changes that are counter to economic conditions. Quarterly budgets mean more work for staff and board members, but the firm is better able to quickly change course before any real damage is realized. The benefits seem to far outweigh the inconvenience allowing staff to remain productive and the firm to remain mission driven. I really love the idea and concept of quarterly budgets, especially tied right to a performance based program of work, but wonder what the downside is, if any. Help me to see the other side. Tell me why I should NOT go to quarterly budgets or tell me if you agree with the idea of quarterly budgets.