How do you deal with uncertainty and volatility in the external environment when using ABB?

由人工智能和领英社区提供技术支持

Activity-based budgeting (ABB) is a method of planning and controlling your costs based on the activities that drive them. It helps you align your resources with your strategic goals and improve your efficiency and effectiveness. But how do you deal with uncertainty and volatility in the external environment when using ABB? Here are some tips to help you adapt your ABB process to changing conditions.

此文章中的业界达人

由社区从 5 条内容中精选。了解更多

Hanan Hasbullah

Senior Accountant @ Coreo Real Estate | Head of Finance

1 Assess your risks

The first step is to identify and evaluate the potential risks that could affect your activities and costs. These could be internal or external factors, such as market fluctuations, customer preferences, competitors, regulations, technology, or disruptions. You can use tools like SWOT analysis, PESTEL analysis, or scenario planning to assess your risks and their likelihood and impact. This will help you prioritize your activities and allocate your resources accordingly.

添加您的观点

Hanan Hasbullah

Senior Accountant @ Coreo Real Estate | Head of Finance
举报内容
Identify potential threats to our financial stability caused by external factors such as economic downturns, regulatory changes, or market fluctuations. Assign probabilities and impacts to these risks to prioritize them. This assessment guides our budgeting and contingency planning efforts, ensuring we're prepared for potential challenges in our profession.

已翻译

赞
Mo Shouman

I Help Tech Professionals Make Tax Smart Decisions - Build Wealth - Retire Earlier
举报内容
It is very important to evaluate an identifier potential risks that could affect all your business activities and costs. You need to look at internal and external factors equally. Customer preference competitive activity closing regulations and AI involvement can impact your business in such a great way

已翻译

赞

2 Adjust your drivers

The next step is to review and adjust your cost drivers, which are the factors that determine how much you spend on each activity. For example, if you use ABB for your marketing budget, your cost drivers could be the number of leads, the conversion rate, or the customer retention rate. You need to monitor your drivers regularly and update them based on the current and expected performance and environment. This will help you adjust your budget to reflect the actual and anticipated demand and costs.

添加您的观点

Mo Shouman

I Help Tech Professionals Make Tax Smart Decisions - Build Wealth - Retire Earlier
举报内容
You can't manage what you can't measure. Use abb for advertising budget it would help you to identify the cost per lead and the conversion rates and this would help you to manage your ongoing advertising and market activity

已翻译

赞

3 Align your goals

The third step is to align your budget with your strategic goals and objectives. You need to ensure that your activities and costs support your vision, mission, and values, and that they are consistent with your competitive advantage and value proposition. You also need to communicate your goals and budget clearly and effectively to your stakeholders, such as your managers, employees, customers, or investors. This will help you gain their buy-in and commitment, and foster a culture of accountability and collaboration.

添加您的观点

Hanan Hasbullah

Senior Accountant @ Coreo Real Estate | Head of Finance
举报内容
Ensure that our professional objectives and strategies are in sync with the broader goals of our organization. This alignment helps maintain focus, fosters teamwork, and maximizes efficiency in achieving desired outcomes. In accounting, it means ensuring financial strategies support the company's overall mission and objectives.

已翻译

赞

4 Analyze your variance

The fourth step is to analyze the difference between your budgeted and actual costs, also known as variance analysis. You need to compare your results with your expectations and identify the causes and consequences of any deviations. You can use tools like variance reports, dashboards, or KPIs to track and measure your performance and progress. This will help you evaluate your efficiency and effectiveness, and identify any areas for improvement or corrective action.

添加您的观点

Hanan Hasbullah

Senior Accountant @ Coreo Real Estate | Head of Finance
举报内容
Regularly review the differences between planned or expected outcomes and actual results. This analysis helps identify areas of improvement, adapt strategies, and make informed decisions. In accounting, it's essential to understand why financial performance may deviate from forecasts, enabling us to take corrective actions and optimize our profession's outcomes.

已翻译

赞

5 Adapt your actions

The final step is to adapt your actions based on your variance analysis and feedback. You need to review and revise your budget periodically and make any necessary changes to your activities and costs. You also need to implement any corrective actions or improvement plans that you have identified, and monitor their impact and outcomes. This will help you improve your ABB process and achieve your goals.

添加您的观点

Budgeting

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

How do you deal with uncertainty and volatility in the external environment when using ABB?

1

2

3

4

5

1 Assess your risks

2 Adjust your drivers

3 Align your goals

4 Analyze your variance

5 Adapt your actions

Budgeting

给文章评分

感谢您的反馈

更多Budgeting相关文章

更多相关阅读内容