Financial Politics. As you prepare the budget, be aware of whether money is tight or more plentiful. Sometimes, there is end of the year money that must be spent or lost. Know whether these pockets of money exist and be prepared to act on them.
If you have discretion on when you can make purchases, it is usually wise to do it early before any retrenchment possibility occurs. Major expenditures can and should be spent as soon as you have the money. Travel and professional development become targets for reversion if not committed early.
Take your business manager to lunch. Interpreting the various rules and regulations surrounding fiscal transactions can be easier with a friend in court.
Some additional strategies are:
Consider Alternatives to Hiring Staff. Many objectives can be accomplished by either adding new staff or by purchasing outside services.
Make or Buy Decisions. Think carefully before deciding to perform a service that can be purchased. Often the specialist provider can do it more economically. If the decision involves a substantial amount of money, do a cost-benefit analysis (the more analytical, the better).
Cross Organization Lines for Support. Consider whether or not you might join forces with another unit for increased bargaining strength or to make scarce dollars go further.
Advisory Group. An advisory committee or customer support group can provide the means to organize some powerful support. When selecting people for the group, consider the rising stars in the organization and the opinion leaders.
Scrutinize all Charges on the Budget. Know what you are being charged for and what the basis is. Some charges are formulaic, e.g. based on number of square feet or head count or other expenditures. If the basis doesn't seem equitable, question it.
Distinguish between Controllable and Uncontrollable Expenses. Divide your budget into two parts and demonstrate that you are controlling what can be controlled.
Know the Latitude in Your Budget. In most organizations, there is flexibility in managing the budget as long as you stay within the bottom line. Sometimes the flexibilty only extends to certain categories of expenditures, know what they are. Know when you need to notify the boss of a deviation and when he/she would consider it minor.
Speak the Language, Walk the Talk. Learn the terms that the upper level of the organization use when they discuss budgetary matters and use these terms. Do your homewalk and be prepared you understand what is going on, to demonstrate that you have evaluated all the alternatives and that you can justify your budget in terms that are persuasive to administrators and finance people.
Revised 2/17/99.