Budget Using the ABCDEF Method

In well over thirty years of working closely with hundreds of not- for- profit organizations, and hundreds of more for profit businesses, I have observed that one of the major weaknesses is in the area of effective and meaningful budgeting. Far too many organizations look to the budget process as a tedious exercise, if not a nearly total waste of time and effort. They have observed how their organizations have treated previous budgets, and question whether the effort is worth it. However, those organizations that use budgets and the budget process in the appropriate manner, develop a stronger, more responsive organization, that is more efficient, more relevant, understands its direction including its strengths and weaknesses, and therefore more capably prioritizes its efforts and expenditures. One of the best formulas for this budget process is what I call the "ABCDEF" Method.
It should be understand that while this article refers to organizations, it is just as relevant to businesses of any sort, as well as to our personal need to budget!
 
1. The "A" is for acknowledging the need to go through the budget process in a meaningful manner. That means committing to examine all aspects of both revenues and expenditures, and budgeting based on needs and prioritizes, instead of merely continuing the status quo. Part of this commitment must be using zero- based budgeting, which includes examining each line item on its own merits and then determining what it is worth to the direction the organization needs to go in, and the group's needs.

2. "B" is for making the budget one that is benefit based. Budgets must be designed to provide the most value to the organization, its vision and mission, and its constituents, members and supporters.

3. "C" represents creativity. Budget molders must look for alternatives, and sometimes creative
outside- the- box alternatives must and should be considered.

4. "D" stands for driving down waste. Only by properly developing a budget and utilizing it effectively is it possible to examine each and every expense area, and to objectively look for waste and/ or inefficiencies that need to be addresses and corrected. There must be no sacred cows, but eyes must be focused at the goals, vision, mission and needs of the organization.

5. "E" should be obvious, but is often overlooked. This process, to be done correctly and in a meaningful manner, requires effort, experience and expertise. Just because someone states that they want a meaningful budget does not necessarily mean they will do, or are capable of doing, what is needed.

6. "F" represents fiscal/ financial reality. Budget creators cannot get bogged down in the past, and refuse to make changes because that's the way it's been done in the past. What are the financial needs of the organization, and what are the financial obstacles being faced? Are they short- term or long- term? Is this only a temporary hiccup or a trend?

I urge all organizations to take a serious look at how they approach their budget process. Do they follow a protocol? Do they heed the approved budget during the course of a year? How serious are they?

RESPECT Is Often DIfferent From BLIND Obedience!

How often have you heard someone speak about how important it is to treat others with respect, both because it's the right thing to do, but also if you wish it to be reciprocated? However, all too often, individuals abuse the concept of RESPECT with the need to always agree, or proceed with BLIND obedience. It is essential for each individual to balance the positive qualities of civility, fairness, open - mindedness, and positivity, with maintaining their personal integrity, and ability to maintain their independence, rather than overly trying to fit in by compromising one's essential ideals.

1. The essential components of respect should be understood and utilized. It begins with being rational and reasonable in one's goals, evaluations and expectations, and remaining fair. There must be an emphasis on empathy or putting yourself in the place of others and understand their needs, fears, concerns, perspectives and points of view. One's priority should be to support the team wherever possible, putting the needs of others and the groups in a high - priority position, while looking to enhance sustainability. These means not merely focusing on how things impact and benefit you, but paying extra attention to others' needs. Wouldn't it be nice if we all were considerate and caring, continuously seeking common ground? Finally, our emphasis should be on trying to get along and play nice.

2. Care must be paid to understand that respect does not mean you must always agree or conform. Do not proceed with merely blind obedience. This means you must prioritize being the best you can be, rather than a mediocre carbon copy of others. Therefore, stay true to yourself, and be yourself!

3. Learn as much as you can, and attempt to find ways to like others, even when you disagree with them. However, always realize that you must live your own life in a significant, goals - oriented manner.

4. It's a good idea to be introspective, but do so in an objective manner, understanding realistically both your personal strengths as well as areas that could use some attention. However, while maintaining your principles and ideals, take care to avoid becoming an idealogue, and avoid becoming preachy and/ or obnoxiously demanding.

5. Understand and appreciate the necessary nuances and individual needs and perspectives of others. Don't confuse nurturing (which is often positive) with pandering!

6. Remain aware and wary about than often fine line between desiring or demanding respect and support, with demeaning yourself with compromising your basis beliefs and ideals!

Respect, when used in a positive manner, is often a wonderful thing. However, truly being respected if often quite different than the empty platitudes and rhetoric often deemed appropriate by some.

However, there is also a tendency, for people to merely accept something said and/ or done, and/ or proposed, because of deference to an individual, employer, etc. Always proceed with your eyes wide - open, recognizing that no one is always correct, and you should listen effectively, and without prejudgment, and be willing to consider alternatives! 

How Does Your Website Reflect on You?

A large proportion of companies, consultants, professionals or even other individuals today have some sort or form of website. Some pay large sums of money to have these prepared and created by professional companies, or do so internally via their IT department. Others use one of many companies where you can create your own Website, and obviously that can be done and maintained for a far lower dollar cost. There have been many disputes and differing frames of mind/ perspectives about what is needed, and the more expensive creators of these sites will always insist that there will be many additional benefits to using their fancier and more professional site. On the other hand, many companies (especially smaller ones), professionals and independent sales individuals question whether the ROI (Return on Investment) will makes sense with their far lower budgets. Regardless of which course one follows in the development and maintenance of these sites, the key is often what is referred to as the SEO (search engine optimization) is optimized, or in other words, how the site may be found when people search for it via major search engines (such as Google, Bing, etc.). When one creates his site, regardless of the cost, it is important to focus on these four areas: 1. Philosophy; 2. Niche; 3. Objectives and Goals; and, 4. Quality and qualities. In today's increasingly digital world, and with so many seeking instant gratification and/ or quick answers/ responses, your Website often will either drive business to, or away! Doesn't it make sense to maintain a consistent message throughout everything you do?

1. When someone looks at your site for the first time, what does it say to them? What is your philosophy? Is it stated in a clear, emphatic, empathetic and meaningful manner? Does your Website indicate and clearly state the main message you are trying to say? Since studies show that people browsing the Web generally spend only a short time before determining whether to remain on the site, that first page (also known as Home page) must whet their appetite and attract them to stay on your site.

2. Are you all over the place, or do you tell others how you are different than your competition? Have you indicated and identified your niche? Do you tell the viewers what advantages there are to them to use you?

3. Do you have a central objective and goals? What are you trying to say about what you do, how you do it, and why you do it better than others?

4. Is your emphasis on merely being another in a large crowd, and trying to fit in with what others are doing, or does your message show that your focus is on offering the highest quality? If someone who did not know you saw your site, would they understand your unique or outstanding qualities, and be attracted to you, wanting to get more information?

It's not enough to merely do it! Do it by emphasizing who you are, what you do, and why you are outstanding!

Budgets: The Revenues vs Expense Debate

One of the most widely, and often hotly discussed issues debated in almost every organization, is whether budget gaps/ deficits should be closed predominantly by addressing revenues/ income received/ generated, or by reducing expenses. In nearly every case, the discussion deteriorates to the level of vitriol, with both sides of the debate seemingly unwilling to listen to the other. However, the reality is, that in most cases, balancing a budget responsibly can only be done through a balanced approach. When there is too much cost cutting, particularly when it is simply done either randomly or across the board, the result in the long term is often far more detrimental than the starting point. When the concentration centers almost entirely on raising revenues, especially when that revenue will mostly be gained by raising either dues or fees, there is often a resultant attrition of membership and/ or supporters. No organization ever grows or benefits (especially in the long run) as a result of either reducing what it offers or provides, or when it prices itself out of relevance.

1. Are most organizations' budgets bloated and/ or out of whack in certain areas? Absolutely, and that is precisely why there must be attention to detail and ramifications used when preparing these budgets. It must also be remembered, however, that even the best thought out and developed budget loses its impact when the organization simply adds expenses to it throughout the fiscal year. The best way to create a budget continues to be by using zero - based budgeting, and evaluating each expense on its own merits. Expenses must be looked at in terms of how much is being spent in relation to its priority for the group, as well as whether the organization is getting the most bang for its buck. Is the group getting its maximum benefit, or can the desired result be achieved using an alternative, often less costly approach. Should the expense area be kept the same (meaning it is optimum under the fiscal conditions), reduced or increased. It should be reduced if either it is not being done effectively, or if the level of priority has been reduced from what it was. It should be increased if at that spending level the organization needs to spend more to achieve a priority that has an essential impact. I refer to that process as ramification expense priorities.

2. Should, and must dues, fees, and other member - directed revenues be adjusted upwardly? Groups need to look at their fees in relation to what other similar groups charge, as well as by the economic realities of the day. Has the organization created a strong enough feeling by distinguishing itself by the value and services it provides? How loyal are its members, supporters, donors and sponsors? What has been done in terms of motivating positive feelings and support? The reality is that revenues often need to be adjusted, but must be done in a way that the overwhelming number of supporters question the value of remaining involved. That can only be done when a rational, balanced approach is utilized. The most sustainable organizations have come to realize that small inflation - indexed dues increases rarely create negative feelings or ramifications, and thus they use a cost of living adjustment method of annually increasing revenues. Those groups that try to maintain their dues, etc., at present levels, and then find itself needing to make a substantial increase at a particular time, are usually the ones that create resentment and resistance.

Every action an organization does has ramifications. Failure to act can threaten its very existence and financial stability, but acting without analysis and balance can have an even more deleterious impact.

Managing Time Effectively

While each of us have the same amount of time in our day, doesn't it seem that some people get far more accomplished in that period than others? Most of us tend to treat money and possessions as treasured assets, while neglecting to protect and maintain our most treasured resource, which is time. Benjamin Franklin said, "Lost time is never found again," and those words are truer today than ever.

There are numerous steps and ways that we can better use our time. These include:

1. Creating to do lists help us organize ourselves, and give us a way to check off items when completed. One of the great benefits of doing this is that it reduces our chances of forgetting something, while often streamlining our activities procedures. If one creates this list (either on paper or on some digital device such as a P.D.A., etc.), it helps most of us focus at what we wish to, or need to accomplish in a specific period.

2. Most people spend far too much time doing "busy work," and then "panic" at the last minute when a task has not been accomplished. If a task is a multi- step task, it is often a good idea to create a detailed Action Plan, breaking the larger task into a series of necessary or essential sub- tasks. Each of these sub- tasks should be as detailed and organized as possible, and it is necessary to assign a specific time line for each task that is needed to be done. Remember that nothing positive can ever happen until, and unless, you begin!

3. Sometimes, one of the most obvious differences between someone who uses time better and someone who does not, is simply creating a personal routine. One should allocate time each day (and a specific time period, if possible) to each of those personal items that make your routine complete. That includes exercise, reading, entertainment, shopping, etc.

4. These theories and actions should be applied to both one's business life as well as any involvement in organizations, etc. Having worked for over thirty years with both business and organizational leaders, it has become quite clear that different individuals vary in their degree of organization, and time utilization. There is an adage that if you want something done that you should assign it to a busy person, and it is a truism because the busiest people are often the most efficient. Of course, it is important to evaluate if one is simply busy doing "busy work" and accomplishing little, or efficiently handling tasks in a timely manner.

As I have taught and written many Leadership Training programs over these last more than thirty years, I have devoted more and more time and emphasis to the importance of managing time. Often, the person who seems to have the most free time has it because he has more efficiently and capably managed his time. Don't be misled by someone who seems to spend countless hours on a project, because there often is not a direct correlation merely between time spent and quality of the work. It is not how much time one spends, but the quality and efficiency of the labor.

There Are 2 Necessities For Quality Customer Service!

How many times have you had some concern with some company, and the representative referred you to the Customer Service department? Or, become upset, for some reason, and feel somewhat ignored by your personal representative or agent, such as a Real Estate Professional, or Financial Adviser? How often have you found that experience either distasteful, disappointing, a waste of your time, etc? Has the result of your experiences with customer service left you feeling that, unfortunately, far too often, it is an oxymoron for many organizations to call what goes on in these department, "customer service?" Since common sense, far too often, is the rarest of business commodities, perhaps it would be a good idea to recommit to truly providing customer service, which should contain merely two essential components: 1. The customer should always come first; and 2. Service and solutions to anything that creates a less than stellar experience should be the top priority.

1. Every business, and/ or independent representave/ agent, must realize that without customers (and preferably loyal ones), they would not exist. They are the ones that spend their monies, use the products or services, and hopefully refer others to that business (especially if they are happy and satisfied)! Wouldn't it, therefore, make sense, for a business to do whatever they can to keep these individuals satisfied (or at the very least, not dissatisfied).

2. What ever happened to pride of performance, thus prioritizing constant and consistent quality, as a matter of course? I recall a situation, where I had an issue with a shipping company that was to deliver two large boxes to a property where some construction was being performed, and when they were not delivered when promised, I called to question the status of the delivery. Rather than treat me with empathy and appearing to care and try to help, I was given a run around, told to call another number (with the explanation that they were not authorized to call another station within their own department), disconnected, left on hold, and the delivery was not delivered for an additional five days, without any offer of making amends, and with merely empty and meaningless apologies that appeared as insincere, as their service seemed incompetent. Since this company consistently advertises the quality of their service, that exacerbated the situation and put an even worse taste in my mouth. Realistically, would I ever use them again unless I had absolutely no other option? Wouldn't you, if you were them, realize that their inferior service would have me repeating my experiences with my sphere of influence?

How often have you been displeased with the services provided by companies or businesses? Isn't it about time, in this highly competitive world and business environment that we live in, that they focus on this key ingredient and component to being successful? Let's urge businesses to stop making "Customer Service" an oxymoron?

Selling Is About Listening To Needs!

Everything we do in life involves selling. Each of us either sells a product, a service, or ourselves. While many individuals outwardly indicate a disdain of some sort either towards selling or salespeople, the reality is that everyone sells. Therefore, since sales is a reality of our existence, doesn't it make sense to understand more about what it is, and how to use professional sales techniques and concepts to our best advantage? While there are many specific techniques that are often taught or trained, superior selling requires a dedication to effective listening, and an understanding that it's rarely about what you want, but rather what your customer, client, patient, friend or family member wants and/ or needs. One of the reasons so many people have negative views about selling and/ or salespeople, is the perception that individuals don't listen, or care, about their customers or clients, but focus only on what's best for them, personally! While this is often merely a perception, rather than fact, it still must be understood, addressed, and focused upon! Those real estate professionals and financial advisers, must take this into consideration, from the onset, and throughout their relationship. However, you must remember, and take to heart, that this must be your true intent, and not merely some empty rhetoric, or exercise!

1. It always begins with being an effective and quality listener. This means learning to dedicate far more energy and attention to listening than nurturing your own need to be heard. Many of us think we are good listeners solely because we hear what others are saying, and remember what the gist of the message might be. However, hearing and listening are far different entities, because listening is an interactive and proactive activity, while hearing is far more passive. When another person is speaking, the first step is to be able to wade through some of the minutia and fluff, and separate the ue message from the rest. It is essential to avoid reacting to what you might believe or anticipate is being said, but rather one must develop both the skills and the discipline or patience to wait to fully understand what the message actually is. Far too often, in our haste to respond, or in an emotional reaction, we immediately answer a question, while often not truly understanding what the real question or concern might be. The key to effective listening is to first listen carefully and patiently, and to ask questions that better clarify the concern, before responding. Far too often, individuals open up a sort of Pandora's Box, because their hasty answer brings up questions and concerns that often were not originally there.

2. The key to using this listening effectively is to realize that others care about their concerns, and not yours. When explaining something to someone else, it is necessary to empathize and understand what is being said from their perspective, and not yours. Patience and seeing another's perspective are often the greatest challenges to quality selling.

Learn as much as you can about sales, regardless of what you do. Using these techniques invariably improve your abilities to get things done in a positive manner.