It’s budget season…Is your budget the best kept secret in the company? Before we answer , let’s define the word “budget”. On the surface it is rather sterile, lacking emotion or a sense of urgency among most of your employees. When in fact it is everything to the corporation. Hundreds of hours in the construction by senior staff, numerous revisions, then promises made to corporate, the bank, shareholders, other senior members on the team. It is or should be, the testimony as to where you are going this year. The document outlining plans and objectives, the game plan that unites the organization in a common goal. However, in many cases, it is the organization’s best kept secret. 80 to 90% of your employees don’t know anything about it, would not understand it if you showed it to them, and get $30,000 to $100,000 a year in compensation whether you achieve it or not. Much like a football team where only 2 of the 11 players on the field know or care where the end zone is. A self-imposed organizational disconnect with a significant price tag attached.
We are not advocating sharing your entire budget document with all employees. We do however strongly advocate identifying the key, fundamental “drivers” of the budget, and educating your entire team to their importance… more on that later.
You need to engage your employees, at all levels, in pursuing and achieving an aggressive, realistic goal. THAT is a leadership issue. Creating an environment where employees are led and motivated to specific business outcomes is a process and a discipline that shapes the culture of an organization. Are employees showing up for work and simply exchanging time for money and doing what they have to do? Or are they aware, engaged, and aggressively moving towards this months business goals AND sharing in the success of winning? Hourly and salaried? The difference in culture, organizational dynamics and business results is real, measurable, and significant. We need to LEAD people to where we want them to go. And this requires being VERY INTENTIONAL in creating an atmosphere, strategy and methodology to accomplish this. It does not happen by osmosis from the CEO.
If you have read a few of our blogs, you know we subscribe to a four part mantra… Define, Measure, Pursue and Reward Organizational Performance. Reward exceeding the budget in this case… beating the key drivers. Nothing more, nothing less. From the top of the organization to the bottom. One team, one goal, this month, every month.
As you begin the next year, I challenge you to a critique your own situation. Do your employees really know the critical components/drivers of your budget? Do they care? Do they have skin in the game? Do they know where the end zone is? If you answered no to one or more of those questions, I am 100% confident you will leave money on the table. The opportunity exists to measurably exceed your 2017 plans if you incorporate key ingredients into a strategy to LEAD your people to where you want to go.
We would love to help you do that.