You're facing budgeting and forecasting discrepancies. How can you avoid repeating past mistakes?

When the budget and the actuals differ you need to ask at a high level was it a budget issue, a behavioral issue, or a fluke. We often think that most of the time it is a fluke, something odd happened, but the truth is it is almost always one of the first two. Budget issues are when we plan for something but are not realistic in our estimates, we let our hopes and dreams set the number not reality. Behavior issues usually come down to communication, systems, or processes not being aligned with the goals of the forecast. Both of these are MUCH more common than true flukes like a math error.

Budgeting & Forecasting is the process of working out the simulations with many probables. In this exercise, we might land on different sides if we are not vigilant or have detectives' eyes. We might make mistakes it's important to understand whether we made errors due to optimistic projections of the Business Development team or the Conservative approach of Cost owners; Historic information and Interviews with stakeholders will usually help us to avoid these challenges. If we have committed some calculation error, then we need to be bold enough to own it and show case what Corrective action and Preventive action we shall take in future to avoid this mishap.

Há erros cometidos por imperícia, erros induzidos por informa??es recebidas imprecisas, corre??es de valores n?o cobertos por contratos e resultados negativos por pagamentos inferiores de clientes. é preciso descobrir a origem para depois verificar as possíveis solu??es. Erros cometidos por imperícia infelizmente devem ser absorvidos pelos lucro ou a??es corretivas devem ser implementadas. As outras raz?es devem ser renegociadas com o objetivo de continuar o contrato vigente.

Em um mercado global em evolu??o com novas técnicas de industrializa??o de produtos, novos equipamentos para realizar os trabalhos e novos materiais alternativos, é preciso estar atualizado e utilizar estes como modo de reduzir os gastos de contratos vigentes. Já a revis?o dos processos envolve analisar os métodos de cálculo e também os calculistas e profissionais. Investir em cursos de atualiza??o para os profissionais e equipá-los com informa??es coletadas de outros departamentos poderá colaborar no processo de revis?o.

Once we have CAPA (Corrective Action Preventive Action); we need to work towards it and come up with real solutions that have to be adhered by the team and ourselves. Another way could be Vetting all the information before it hits spreadsheets by doing extensive checks on the source of information and logical reasoning behind the same. Knowing Industry parameters are also essential to know the deviations for us to be able to check in detail. Else we might not be able to pull out extraordinary deviations.

If numbers are skyrocketing, Than something is extraordinary with you that the competition doesn't have else you have been taken for a ride. So Look for differentiator factors and put across your views for healthy debate. Budgeting & Forecasting need to be seen beyond a traditional exercise and brainstorming exercise about how best an organisation could perform given a set of challenges and opportunities. Brainstorming would lead to buying ownership from respective stakeholders and developing sense of responsibility towards achievement of desired goals.

Budgeting & Forecasting is a Learning Exercise which just keeps on getting better and better with years of experience. Usually, if you make a continuous year-on-year 3 Budget for a company, that is where you start learning and understanding the budgeting strengths and weaknesses.

Irrespective of Budgeting & Forecasting exercises, Effective communication is the key to day-to-day peaceful life. Effective communication plays a vital role in exchanging learning and accepting corrections. All the stakeholders need to work towards the same Goal Post; for that, coordination among the team must be necessary to achieve the desired goal.