Your company is facing conflicting budget requests. How will you navigate the corporate finance maze?

It’s all about how one can prioritise. If a budget ask is aligning with company’s goal for that fiscal year and it will generate ROI then one can consider the request and deprioritise somewhere else. Understand the requirement and based on that a decision needs to taken. (Always remember to not outrightly reject a request, try to understand the requirement and based on that take the right call)

Align budget requests with the company's strategic goals. Identify which requests support key initiatives or have the potential for the highest impact, Understand the necessity and potential return on investment for each request and Create a framework for evaluating each budget request based on criteria such as impact, urgency.

Prioritizing projects that aligns with strategic goals and objectives . Prioritizing outcomes that one wants to achieve . It’s not always about cutting costs but allocating it, especially in the nonprofit world , to strategic goals and outcomes

First evaluate and sort out the requests which contribute towards organizational overall strategic goals and delay the requests which seems non essential for the time. Allocate budget to the high priority requests and monitor their realization and returns thereafter which will form a good reference or experience for you in future.

I believe that first step should be prioritisation & company's need / objective which it want out from spending such a budget. For Example, company has low liquid cash, then it has to spend it in a project where such available cash can support a project and project starts generating funds in a shorter period of time. I would be fine with less ROI but timely cash generation and vice versa too if i have no funds availability issue then one should check for a project generating more ROI even in a longer run. So for me, evaluation in each preservative with different analysis and Financial Models as per organisation need of the time is the essence of the budget allocation for any project.

Absolutely. Utilizing BI tools can streamline trend analysis, highlight seasonality impacts, and reveal investment performance. As a example, a logistics company involved in freight forwarding, warehousing, and transportation can benefit greatly by analyzing shipment volumes, warehouse utilization, and transportation costs, the company can identify peak seasons and adjust operations accordingly. Integrating both financial and non financial data from various departments ensures a well-rounded analysis. Post-investment appraisals are also crucial, allowing us to compare actual outcomes with projections and refine future strategies. This ensures our investments are data-driven and strategically aligned.

Trends are important. Looking past the numbers is equally important. Think outside the box and challenge trends that become too flat or begin to move in the wrong direction. Often times the quantitative analysis is completed without the qualitative piece. Don’t fall into that trap.

Entender las necesidades, tener claridad en los datos históricos y el gasto actual de cada una de las áreas, nos ayudará a decidir qué proyectos son críticos y prioritarios, así como mantener el compromiso y enfoque en aquellas inversiones que a largo plazo tendrán resultados positivos en la organización.

Il est important de procéder à une analyse approfondie pour examiner en détail chaque demande budgétaire. Ce qui implique d'évaluer l'alignement avec les objectifs stratégiques de l'entreprise, son retour sur investissement potentiel et son impact global. La démarche implique aussi celle de la priorisation, de la consultation des parties prenantes, de l'élaboration de scénarios, de l'optimisation des ressources, de la flexibilité budgétaire, de la communication transparente et du suivi-révision.

Es clave tomar decisiones siempre basadas en datos, ya que estos deben ser nuestra herramienta fundamental. Sin embargo, tomar decisiones basadas en datos no implica solo analizar cifras y tendencias. También es esencial considerar los efectos colaterales de nuestras acciones. Siempre hay que analizar el contexto para entender completamente el impacto potencial de nuestras decisiones.

I read Simon Sinek's book where he gave the example of Nelson Mandela's leadership style, which is particularly relevant here. Mandela would always speak last in meetings, allowing him to listen to everyone's viewpoints before sharing his own. This approach demonstrates respect for others' opinions and leads to more informed decisions. By adopting this method, leaders ensure that stakeholders feel valued and their input is considered, fostering trust and collaboration. Incorporating this approach in budget discussions can result in more effective conflict resolution and alignment with the company's strategic goals. It ensures decisions are made with a comprehensive understanding of various needs and perspectives within the organization.

Stakeholders from the entire organization must be engaged. If you’re soliciting feedback from leaders/department heads only, you’re missing the point.

Tomar decisiones con un equipo interdisciplinario es clave para el éxito. Para poder involucrar al equipo que participará como input en nuestra decisión, hay que compartir información. El trabajo colaborativo tiene más pros que contras; el que el personal se sienta parte genera una sinergia positiva que no se logra en ambientes donde todo es confidencial y no se comparte la información. Si alguien no se siente parte, tarde o temprano se notará en el resultado negativo de su trabajo.

Siempre es relevante trabajar participativa y co construyendo. Una sola área no tiene las respuestas para todo. Está en la comunicación bilateral y la colaboración el poder continuar el rumbo con menores obstáculos.

Budget conflict occurs when the parties are not aligned with the corporate strategy. Efficient planning is a prerequisite for creating a budget that is aligned and consistent with the company's objectives. In FP&A, we need to validate the adherence of goals to the corporate strategy. This is one of the essential steps to success.

A risk register can be held to make a list of and categorise all the risks posed to an organisation by severity of impact and likelihood of occurrence. The organisation can then respond accordingly (as best they can) in order to mitigate the impact of these risks as and when they materialise.

La gestión del riesgo implica valor en finanzas, y crear valor es lo que cualquier empresa busca y lo único que la hará permanecer y crecer en el mercado. La gestión de riesgos implica pagar solo por el riesgo que tiene valor, el riesgo sistemático. Nadie pagará por un riesgo que se puede eludir simplemente siendo eficiente en la diversificación.

La gestión de riesgos es primordial para transitar desde la inceridumbre hacia la certeza en el cumplimiento de los objetivos organizacionales. Sin este proceso no podríamos direccionar el rumbo de la empresa de forma correcta.

Access risk is a good exercise as it allows us rationally see ups and downs for the investment we are about to take. And how our investment will influence the company’s financial health in case of low ROI

Un científico apreciado expresó “si no quiere correr riesgos, entonces muérase” Los riesgos son parte de la vida misma y debemos aprender a gestionarlos. Hay que identificarlos, cuantificarlos, en cuanto a impactos y probabilidad de ocurrencia, y asignar los recursos de manera EFICIENTE para mitigarlos.

Implementing strong financial controls involves three key steps: Spending Guidelines: Set clear rules for fund usage, define allowable expenses, and require approvals for large expenditures. Categorize expenses into Opex (operational costs) and Capex (capital investments) to align with financial strategy. Monitor Expenditures: Track and review transactions regularly. Compare actual spending against the budget using detailed reports. Identify variances early and take corrective actions as needed. Conduct Regular Reviews: Schedule periodic financial reviews to assess budget performance. Analyze data on expenditures, discuss deviations, and adjust future budgets to ensure alignment with financial goals.

In my experience, we try to hold regular meetings with the different program managers in our company. Creating a budget is not just about drafting it; we need to ensure we have steps to accomplish, follow, and control the expenses, funds, and developments. In my case, apart from the meetings, we create dashboards to track the expenses and funds of the company by department. This helps us implement those controls.

Es clave implementar controles presupuestarios efectivos, pero para lograrlo es fundamental contar con un procedimiento operativo adecuado. Tener un presupuesto alineado con un plan de cuentas que refleje el resultado real de cada hecho económico-financiero es esencial para que el control no solo se alcance, sino, más crucial aún, se mantenga en el tiempo.

Importante que todos comprendan las expectativas y sepan cómo cumplir con los controles establecidos. Para ello, es conveniente capacitar en procedimientos financieros y comunicar los lineamientos. En mi experiencia, ayuda mucho descentralizar la disposición de información para que cada líder pueda llevar un adecuado control de sus gastos. Herramientoas como Power BI o Looker Studio pueden ser de gran utilidad.

Pour une approche plus audacieuse, adopter un système de contrôle automatisé qui utilise des smart contracts basés sur la blockchain pourra garantir la transparence et la précision dans la gestion budgétaire. Cela permet non seulement de suivre les dépenses en temps réel mais aussi de garantir que les contrôles sont appliqués automatiquement. En termes novateurs les technologies d’IA sont capables de surveiller les anomalies en temps réel et ajuster les contrôles en fonction des comportements financiers observés.

Dado precisamente lo cambiante del panorama financiero, complementar un ejercicio de presupuesto anual con un forecasting mensual para doce meses mòviles, puede ser de gran ayuda para otorgar la flexibilidad requerida.

From my experience conflicting budgets can be mitigated by: 1.Ensuring each department understands the organization's strategic goals as a guide, and ensure it aligns properly. 2.Require departments to substantiate their budget requests with data, including past performance and projected outcomes. 3.Conduct thorough analyses using tools such as cost-benefit analysis to assess the implications of each component. 4.Encourage cross-functional collaboration during the budgeting process to ensure that different departments understand and support each other's needs and priorities. 5.Foster open communication and transparency throughout the organization regarding budget decisions and their rationale.

La revisión y el control no pueden faltar en la dirección de una empresa. Teniendo objetivos y metas claras, con acciones concretas, recursos y plazos definidos, debemos evaluar periódicamente los resultados y el avance, para identificar fallas, monitorear riesgos y establecer las acciones de mejora pertinentes.

La revisión periódica no es una opción si no una necesidad, un ejemplo es lo ocurrido con la pandemia de covid donde llevo a comportamientos atípicos en distintos sectores, algunos crecieron abismalmente y otros desaparecieron, revisiones periódicas de meses reales más meses presupuestados ayudarán a reforzar o replantear los objetivos para no fallar a los objetivos estratégicos.

Strategic goals should be decided first. In case of any budget conflict, stakeholders should be taken into confidence and decisions to be taken for achievement of strategic goal keeping in view of the rapid changing global scenario. Strong financial controls to be implemented. Resources to be allocated as per actual requirement. Constant review and monitoring of the same to be done. There should be flexibility in the budget allocation.

To aspiring voices in Corporate FP&A: When navigating conflicting budget requests, clarity and collaboration are key. Start by understanding each stakeholder's goals and the broader company strategy. Humanize the process by listening actively and empathizing with diverse perspectives. Communicate openly, focusing on shared objectives rather than individual demands. Use data to build a compelling narrative that aligns with strategic priorities. Finally, be agile and adaptable, ready to pivot as needed to achieve consensus and drive business success. By balancing empathy with strategic clarity, you'll navigate the corporate finance maze effectively and earn respect as a trusted advisor.

Be creative and innovative Find creative, innovative, and cost-effective ways to implement your activities allowing you to stretch your budget and realize savings that can be reallocated to other priority items.

Establecer una política que considere la creación y uso de un fondo de contingencia es muy importante para hacer frente a las dificultades que pudieran presentarse durante la operación, así no poner en riesgo el incumplimiento de los objetivos y peor aun la continuidad del negocio como ha sido el caso de muchos.

To navigate conflicting budget requests, I would first assess the company's strategic priorities. Then, I would analyse each request in terms of return on investment, alignment with corporate objectives, and urgency. I would promote open communication between departments to better understand their needs and seek compromises or creative solutions that satisfy multiple interests. I would use historical data and financial projections to support objective decisions. Finally, I would present a balanced plan to management, highlighting how each budget item contributes to the overall success of the company.