Being accountable for the budget is about far more than taking responsibility for any mistakes made or if something goes wrong with the budget. It is also about being committed to the numbers once they’ve been approved and agreed upon. Holding people accountable to their numbers is critical.
If an employee is not made aware of the importance of a budget, nor held accountable, their effort will probably reflect this. However, on the flip-side, when people are held accountable, results will usually reflect this. Accountability helps breed consistency and alignment. It also encourages accuracy.
We came across this Harvard Business Review article recently that we felt really hit the nail on the head as far as why budget accountability is so important and some of the ways in which to encourage it. While it may be challenging, it is possible with a little nurturing.
Here are some tips to increase budget accountability:
- Set clear expectations
- Ask for departmental input
- Consider simplifying the process
- Provide access to the necessary resources
- Measure progress
- Make people aware that they are accountable – sometimes the reminder works wonders
- Accept accountability yourself
Check out the article in full here: https://hbr.org/2016/01/the-right-way-to-hold-people-accountable.
An effective budgeting and forecasting process is crucial – just as crucial as ensuring your people are accountable to their numbers. At True Sky, we can simplify the process. Find out more at www.truesky.com today or call 1 855 878 3759.