The budget you committed to many months ago may be starting to get a little stubborn. Reality has a sad tendency to deviate from the drawing board. Usually with the wrong sign. Some bet that this will go away on its own, but hope is a very unreliable partner. It's time to take action!  

Most managers have both developed and committed to goals or budgets. Regardless of whether conservative or stretch goals have been set, the path to the goal is and remains only an assumption at the time it is set. The reality is likely to look completely different by the time we get into the budget year. Quite normal. Nevertheless, there is much that can be done to reach the goal in December.

Create an effective workshop to close the budget gap – now!

The rule is, the earlier deviations are identified, the easier it is to take corrective action. In any case, there is much to be gained by starting right now, rather than losing further time. This is never a wasted exercise, no matter when it is done.

Just to be clear: The “Fill in and send back” spreadsheet exercise will rarely make any difference. At best, you will get some approximate numbers from the few who respond, with low support.

Closing the budget gap is not a stand-alone spreadsheet exercise. To succeed, this is about method, process, and the delivery of collective expertise.

Here are our 7 best tips on how to proceed to reach your goals on a budget:

• Create an economic simulation model to be actively used during a workshop
• Gather the decision-makers in your team for the workshop, because now decisions are actually being made.
• Understand and acknowledge the truth behind the deviation to date from the budget
• Project a likely deviation for the rest of the year based on what you now know.
• Create awareness of where the outcome will actually end up if you do nothing.
• Find the overall critical elements you need to address, and simulate the effect of the individual measures immediately
• Repeat process with new measures until the deviation from budget is closed in the simulation model, or the goal is reached

Be prepared for a tough but effective day at work!