How can feedback improve budget performance evaluation?

I think most people view a budget exercise as a conflict when it should be a partnership. Take the perspective of understanding resources required to execute the organization’s strategy, and if these resources are additional YoY, partner and get feedback to make sure you understand the risks associated with removing them. In the end, the feedback from risks and benefits of a proposed budget make for a much stronger narrative vs. just the numbers alone.

Feedback is a vital tool in budget performance evaluation, providing valuable insights, identifying areas for improvement, and promoting continuous learning. It helps measure performance against budgeted targets, identify variances, evaluate operational efficiency, ensure strategic alignment, promote continuous improvement, optimize resource allocation, aid in risk management, encourage employee accountability, align with key performance indicators, benchmark against industry standards, foster transparency, integrate technology, facilitate real-time feedback, facilitate scenario planning, assess customer and stakeholder satisfaction, and identify areas for training and development.

In my experience, feedback is the linchpin for refining budget performance evaluation. Regular input from stakeholders and team members provides invaluable insights into the effectiveness of financial strategies. By fostering an open feedback loop, we identify areas for improvement, optimize resource allocation, and align budgetary goals with organizational objectives. This collaborative approach not only enhances fiscal responsibility but also cultivates a culture of continuous improvement. Let's connect to delve deeper into the transformative power of feedback in elevating budget performance!

Feedback helps spot data discrepancies and allows for quick course correction. it also helps in understanding and analyzing the "why" behind budget differences and refining strategies.

Constructive feedback provides valuable insights, helping individuals and organizations identify areas for improvement. It serves as a guide for enhancing performance and refining processes.

An internal and external feedback is required. The external feedback will reflect customers expectations and internal feedback would align expected outcome and collaboration of different stakeholders within an organisation.

A 360 degree feedback from both internal and external stakeholders through a structured process will always add value to budget performance evaluation!

-Managers provide a strategic lens, ensuring that budget allocations align with broader organizational objectives. -Colleagues can uncover operational efficiencies or redundancies that may not be visible at the managerial level. -Client's feedback impacts revenue projections and customer retention strategies. It's an indicator of whether budget allocations are translating into perceived value and satisfaction in the marketplace. -Vendors offer a unique viewpoint on supply chain efficiency and cost management. This can lead to renegotiated contracts or changes in procurement strategies. -Analyzing how competitors allocate their budgets can provide a valuable benchmark. It helps in understanding market standards.

-Budget Reports: These are not just data compilations; they tell a story of fiscal management. Viewing them as narrative tools can shift focus to more strategic financial storytelling, where numbers are contextualized to reveal broader financial health and trends. -Budget Meetings: Beyond routine discussions, these can be transformed into creative brainstorming sessions. Encouraging out-of-the-box thinking in these meetings can lead to innovative budgeting strategies, optimizing resource allocation. -Budget Reviews: Utilizing these for mentorship opportunities, especially for less experienced team members, can enhance understanding and skill development in financial management.

Feedback methods in budgeting vary based on intent, frequency, and structure. Budget reports detail actual vs. planned results, outlining variances and actions taken. Meetings engage stakeholders to present and discuss budget reports. Reviews, led by managers, evaluate budget performance formally or informally. Surveys gather external feedback from customers or suppliers. Feedback forms aid in providing colleagues with performance-related input. Choosing the right method aligns with the specific goals, audience, and depth of analysis required, fostering effective communication and improvement in budget management.

Entendo que o Controller deva exercer a função de provocar a devolutiva dos feedbacks ao promover a cultura de acompanhamento constante do orçamento, fomentando o retorno de insights e feedback dos responsáveis por cada área. Uma rotina de análise junto aos líderes resulta em feedbacks diretos, além da abertura de um canal mais sólido entre os envolvidos. Isso envolve esforço e muita disciplina sobre a agenda de ambos os lados, mas resultado em um feedback mais apurado e pontual sobre o orçamento em cada centro de custo.

What we forget sometimes is the budget is a living document. Finance and sales came up with the preliminary numbers. That doc is bucked around the organization before finalization. I borrowed an idea from a colleague called a "rolling forecast". It's another column on the actual vs budget document. The rolling forecast is calculated monthly by adding or subtracting the variance to the original budget column. In a short period, that rolling forecast becomes a useful tool for showing changes to material needs, logistics, and treasury numbers. The original budget remains fixed. Only the rolling forecast changes from month to month.

The emphasis should be on criteria that assess performance and guide future improvements. Consider accuracy as a litmus test for financial fidelity, ensuring decisions are data-driven. Completeness serves as a comprehensive check, ensuring no financial aspect is overlooked. Timeliness in feedback fosters agility, allowing for quick course corrections. Constructiveness turns feedback into a tool for empowerment rather than criticism, ensuring a proactive and positive approach. Fairness ensures the feedback process is devoid of bias, promoting a culture of trust and transparency. When applied effectively, this will transform budget feedback from a mere evaluative exercise into a strategic tool for organizational growth.

Incorporating internal and external feedback into the budget performance evaluation process enhances the organization’s ability to learn from experience, make informed decisions, and contribute to developing more realistic and effective budgets in future planning cycles. As a finance business partner, seeking for stakeholders feedback fosters trust and engagement, it helps manage risk and opportunities and allows implementation of strategies to mitigate identified risks. Feedback helps identify whether variances are driven by internal or external factors or changes in assumptions. Most of the time, stakeholders provide insights that are not evident from the financial data alone. They help us tell the story behind the numbers.

Transform listening into an active exploration, where you're not just hearing words but seeking the story behind the numbers. When asking questions, aim to uncover the "why" behind the data, encouraging a deeper dive into financial narratives. In presenting feedback, use storytelling techniques to make your points resonate more strongly. Your responses should be a blend of acknowledgment, constructive critique, and open-mindedness, creating a dialogue rather than a monologue. The key is to create an environment where feedback is exchanged and experienced, leading to meaningful financial insights. Finally, consider follow-ups as opportunities for continued engagement and learning rather than just checking off a box.

Communication and interpersonal finesse form the crux of effective budget feedback. Actively listening and expressing genuine interest in given feedback is crucial. Utilizing open-ended, probing questions aids in unraveling, delving into, and confirming feedback details. Supporting feedback with facts, examples, and rationales bolsters its validity and comprehension. Acknowledging, agreeing, or respectfully disagreeing with feedback is imperative. Follow-up to track progress on actions derived from feedback is indispensable, ensuring implementation and assessing results. These communication skills underpin a productive feedback loop, fostering continual improvement in budget performance.

It is important to be able to engage and manage crucial conversations during conflict in discussions, it is inevitable at some point of time. Challenging the basis and as-is is important to progress and make good budget.

Percebo na minha carreira que a reunião de orçamento não é o espaço ideal para feedback, mas sim para analisar o que ocorreu e correções e melhorias que deverão ser feitas. O processo de feedback deve acontecer antes, entregando tempestivamente os dados, análises e tudo o mais que seja essencial se garantir o cumprimento das metas. Deve haver um centralizador que canalize os feedbacks, bem como todo os histórico que ocorre no orçamento do período, garantindo o registro dos fatos, os analise e entregue as correções ou novas projeções. O papel do Controller se torna essencial não apenas para consolidar dados, mas para garantir que o feedback seja assertivo e produza resultados posteriormente.

In my experience, I want to be ask or I will ask what can I do to be better in your eyes. Now the manager has to give you a plan to be better and it’s your choice to follow the plan. Clear expectations will take your team to the highest ceilings.