Publications & Products
Volume 1, Issue 45

Tips for Creating a Manageable Budget

Financial experts say managers who are responsible for creating their department's budget should seek input from team members during this process.

The instructors of a course on financial essentials for managers recently shared some advice about creating a budget with the Harvard Business Review. Among their suggestions include:

  • Stay goal-oriented when putting together a department budget. Ensure that all spending contributes to accomplishing department goals. "Don't let other issues sidetrack you," the instructors say.
  • Don't draft a department budget alone. Include team members in the process. "They may have knowledge about certain line items that you don't," the instructors note. For example, a team member who benefits from certain spending might be able to tell his or her manager if there is room for this spending to be cut or if there is a need for more funds.
  • Be careful about assumptions made in the process of creating a budget. "A budget should take current data, add assumptions and create projections," the instructors say. "When you present the budget, you'll need to be prepared to defend [those assumptions]."

This article is from the May 21, 2012 issue.

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Summit for Leaders in Advancement
July 15 - 17, 2012
Washington, D.C., United States

Session speakers include:

David Rubenstein, philanthropist and co-founder of The Carlyle Group

Dan Pink, author of Drive: The Surprising Truth About What Motivates Us

Sylvia Manning, president of the Higher Learning Commission

Lap-Chee Tsui, president of the University of Hong Kong