NURAY GÖKMEN KAHVECİ | DIGITAL MARKETING MANAGER
It is that time of the year! 2019 budget planning is in full gear and you are trying to come up with new ways to make the right decision in order to create an efficient budget.
If you think it’s hard to develop a budget, you’re in a good company. Today’s motto is “do more with less”! Faced with high competition, companies need to spend every penny wisely. A Nielsen study found that %40 of respondents feel very confident in their team’s ability to determine the most effective way to allocate their marketing budget.
Today, companies often use outdated and complicated spreadsheets, older IT systems, and manually prepared reports. After spending long times to collecting and processing data, the lack of consolidated information and tools to perform analysis makes it difficult to track execution, program success, and convert data points into narratives that support their goals. This approach to budget formulation is labor intensive, less accurate, and harder to manage for budget purposes.
It’s obvious that the data is empowering new insights and business initiatives. Your data is out there and why not use it? Good judgement and good data are integral for leaders to make good decisions. By building multi-dimensional, structured databases, you can add new levels of transparency, accountability, and collaboration to some of the biggest factors impacting your budget planning and formulation.
Data-driven budgeting, also known as performance budgeting or results oriented budgeting, is more than a mere accounting of resources; rather, it drives decisions predicated on outcomes resulting from the use of resources. A performance budgeting process examines company/department goals and objectives, measures planning results, and uses this information to modify budget allocations over time. Successful planning replaces gut feel with objective, fast based analysis. This enables you to make better business decisions in support of company mission.
New Ways To Get Better Results:
- Collect or share data in a way that is actionable
- Input targets
- Integrate budget data and enforce business rules and guidelines
- Optimise your planning against the objectives
- Leverage data to inform planning, programming, budgeting, and execution decisions
- Monitor KPI and set an agile monitoring system
Instead of arguing for your budget, base your decisions and arguments on 100% facts. In order to make the chaotic world of budget and money allocation a bit more structured, facts based on data and conclusions derived from it are vital.
It is sure: data driven decision making is here to stay and budgets shouldn’t be based on crystal ball forecasts any more.