Do you think your budget will save you? It won’t!
Some people believe that creating a yearly budget is the ultimate solution for achieving financial success. But does setting numbers on a spreadsheet deliver results? Without the right actions, even the most well-thought-out budget can fall apart. Success lies not in the plan itself but in how you bring it to life.
Tracking progress, reallocating resources, and addressing priorities are just steps needed to ensure your budget works. It’s not enough to plan; what happens after the planning makes all the difference.
So, what actions should you take after the yearly budget is set?
Effective Goal Execution – Your Steps for Success
Planning is important, but the real impact comes from execution. While it’s tempting to focus mostly on planning, finance teams make the biggest difference by ensuring company goals turn into clear, actionable steps.
Every week, it’s important to review progress with the executive team, adjust seamless strategies driving the budget, and hold everyone accountable for meeting goals. This ensures your company moves from plans to results:
Accountability is the Foundation
To achieve goals, you need to assign clear responsibilities. Without ownership, progress stalls.
Set clear targets - An effective budget requires ensuring goals are specific and within a team’s control. For example, if sales and marketing share responsibility for a metric, break it down. Assign marketing to handle expenses and lead generation, while sales focus on conversions.
Assign one owner per target - A single person should be accountable for each goal. Delegation is fine, but ultimate responsibility stays with the leader.
Reassign if needed - During re-forecasting, adjust ownership as metrics evolve. For instance, if retention metrics depend more on product than customer success, reassign them accordingly.
Enforce accountability - The CEO must lead by holding people accountable. Provide clear data to help her make decisions.
Without a culture of accountability, planning efforts lose value. A long-term financial goal usually involves creating a structured framework for setting targets and enforcing accountability. Discuss with your CEO early about how targets will be enforced and how you can support her decision-making.
Focus on Actionable Metrics for your Yearly Budget
When planning, identify specific actions (input metrics) that lead to results. Examples include calls made, emails sent, or customer issues resolved.
Break goals into inputs - For every key result, define measurable actions that align seamlessly with goals in actual budgets.
Assign responsibilities - Clearly define who handles each action.
Set weekly targets - Track progress weekly to ensure steady momentum.
Investigate misses thoroughly - Avoid vague explanations like “conversion rates dropped.” Identify specific causes, such as insufficient training or ineffective outreach.
Track Metrics Weekly and Share Progress
Monitor progress regularly to keep everyone on the same page and accountable.
Automate reporting - Ensure systems feed into one source for daily updates on targets and actual performance.
Use accessible tools - Present data in a simple format with the ability to drill down into details as needed.
Provide updates in multiple formats - Share charts, written summaries, and raw data to suit different preferences.
Celebrate successes - Recognize strong efforts weekly to motivate teams.
Discuss metrics in meetings - Include a brief review of progress in weekly team meetings to encourage feedback and accountability.
Sharing metrics openly boosts awareness and ensures everyone stays focused on the company’s goals.
Act Quickly on Key Indicators
As the finance team, you must connect the dots across the company to identify and address problems quickly.
Tie KPIs to processes - Link metrics to customer journeys, such as onboarding times or conversion rates, to track efficiency.
Regularly review metrics - Dedicate time each week to analyze data and identify areas needing attention.
Run scenarios - Use models to show the potential impact of exceeding or missing targets.
Stay connected to customers - Regularly review customer feedback to understand their needs and challenges.
You are uniquely positioned to escalate issues and guide the company toward seamless solutions as you prepare the company for success.
Align Incentives with Goals
Tie compensation to performance to reinforce company priorities.
Incorporate activity bonuses - For example, include outbound calls or emails in sales commissions to encourage consistent effort.
Reward customer focus - Offer bonuses for customer satisfaction metrics, not just upsells or retention.
Tie management bonuses to results - Base a significant portion of bonuses on quarterly outcomes to maintain urgency.
Balancing long-term success with short-term activity keeps teams focused and motivated.
Encourage Quick Iteration
When issues arise, address them immediately and adjust tactics as needed.
Act fast - Don’t let delays slow progress. Quickly gather the necessary people to implement solutions.
Use available data - Avoid waiting for perfect data to make decisions. Work with what you have.
Simplify systems - If tools aren’t working, use temporary solutions like spreadsheets to track critical actions.
Facilitate team collaboration - For cross-team problems, schedule frequent short meetings to resolve conflicts and build trust.
Document lessons learned - Keep track of what worked and what didn’t to refine future plans.
Build a culture of quick decision-making and continuous improvement to stay on track and achieve goals.
Actions Speak Louder Than Budgets
Setting up a budget is just the first step, like putting gas in a car—it won’t drive itself. Success doesn’t come from numbers sitting pretty on a spreadsheet; it’s built by rolling up your sleeves and getting to work. Celebrate wins, but don’t stop there. If you want your budget to work for you, make every action count. The sooner you act, the sooner you see results.
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