By Richard Brody October 04, 2018
Nearly every organization, uses some sort of budget, in their planning, and strategic phases of operating, and proceeding forward, into the future. However, after more than four decades of personal involvement, in nearly every aspect of leadership, especially planning, from identifying, qualifying, training, developing, and consulting to thousands of actual, as well as pseudo – leaders, I have always stressed, how those who utilize a budget, effectively, and take the process, seriously, exponentially, enhance their potential to lead, strategically, and effectively, plan, in a relevant, sustainable, responsible and responsive manner. Most groups, merely, proceed, using their budget, as an exercise, fail to maximize their potential benefit, not effectively, proceed, with professional, strategic planning, etc. This is what I refer to as ordinary, same – old, same – old, approaches and budgeting, as compared to using, a more probing approach, such as zero – based budgets. With that in mind, we will attempt, in this article, to briefly examine, consider, review and discuss, some of the differences, in these approaches and philosophies.
1. Ordinary budgeting process: Unfortunately, in the vast number of cases, the budget process, merely examines, past budgets, and makes some, relatively, minor adjustments. This is usually, the way things are done, because it is easier, takes far less time and effort, and permits, a potential leader, to remain within the comforts of his personal, comfort zone. When the priority is popularity, avoiding, rocking – the – boat, and proceeding in the same – old, same – old, ways, groups, often, fail to maintain their relevance, nor proceed, in the most sustainable manner!
2. Zero – based budgeting: Wouldn’t it make sense, if we focused on the best way to proceed, and plan, effectively, and in a clear way, than merely, proceeding, as we have before? Shouldn’t we consider, what has worked effectively, and needs, no adjustment, what might be relevant, but requires a more thorough review, to understand, the best way, to proceed, forward, into the future, what should be abandoned because it no longer is relevant, etc? The concept of using a zero – based budget, which proceeds, with the philosophy, which claims, every process, must effectively serve constituents, and the group, in a relevant, sustainable manner, instead of simply, the same – old, same – old! Using this approach, examines, every non – contractual, line – item, and asks, are we spending our resources, in the best, possible way!
If groups would pay more attention to the combination of idealism, objectivity, and pragmatism, they would usually, benefit, become more relevant and sustainable. Quality leaders seek the best tools, rather than merely, the expedient, popular, ones, or the ways, it’s always been done!
Richard has owned businesses, been a COO, CEO, Director of Development, consultant, professionally run events, consulted to thousands of leaders, and conducted personal development seminars, for 4 decades. Rich has written three books and thousands of articles. His company, PLAN2LEAD, LLC has an informative website http://plan2lead.net and Plan2lead can also be followed on Facebook http://facebook.com/Plan2lead