first of all, as the budget is the technical implementation of the Company`s Business plan, this misalignment should be addressed all over BP to avoid these misalignments in the foreseeable years regarding this dilemma should be detected by conducting root cause analysis and putting our hands on these discrepancies whether from Production, procurement or ------) then reviewing the strategy objectives and the inputted assumptions that would enhance our controllability over those goals

It is very intetesting to read all approaches is based on asumption the departmental budgets is not aligned, or budget is not in line with company goals. In my experience it is crucial to analyze company goals and ensure the goals are realistic, based on company capasicity like number of units that can be manufactured, or amount if hours required is in line with resource availability. The budget is build on these parameters. Departments need to build budgets to ensure they deliver the agreed production or level of service. Bottom up is good suggestion to ensure goals is build on realistic targets and not on whishfull thinking. It is bad management to do budget and goals seperately, then spend hours to find where the misallignment is.

To address this budgetary issue, I would initially identify the source of the gap, which may include inefficient production, inadequate logistics, fluctuating demand, or another variable. I subsequently collaborated with manufacturing, demand planning, and finance departments to recalibrate our operations while maintaining efficiency. Renegotiating supplier contracts, enhancing transportation efficiency, and reducing inventory costs will yield financial savings. Ensuring service levels and mitigating risks necessitates scenario planning. Ultimately, I would present management with a methodical, evidence driven plan that harmonizes operational objectives, cost effectiveness, and corporate strategy.

First company goals and budget must be achievable. If we found any discrepancies, the adjustment must be done from all department to reach the company goal to make correct budget matching with company goal.

I’ve faced such dilemmas, relying on analytical thinking and domain knowledge to find solutions. For instance, we initially used Oracle’s free Enterprise Edition with a 4GB limit for our ERP system. As data grew, we upgraded to the 8GB version, but soon faced high licensing costs. Research led us to AWS RDS, enabling Oracle 19c with scalable, pay-as-you-go pricing, cutting costs significantly. In another case, a valet parking app’s market options were expensive. Networking revealed a developer offering a competitor’s solution at 90% less. These examples highlight how understanding needs, researching, networking, and negotiating can resolve financial challenges effectively.