Quais são os benefícios e desafios dos ciclos de feedback orçamentário?

Regular budget feedback loops offer several key benefits: 1. Enhanced Accuracy: By identifying and addressing variances, businesses can refine their budgets to better reflect actual performance and future expectations. 2. Early Problem Detection: Feedback loops help uncover issues early on, allowing businesses to take swift corrective actions and minimize negative impacts. 3. Continuous Improvement: The ongoing process of analyzing variances and making adjustments fosters a culture of continuous improvement, driving performance optimization. 4. Accountability and Transparency: Feedback loops promote accountability and transparency by providing a clear view of performance against targets.

Los procesos de retroalimentación presupuestaria, son una metodología que implica un seguimiento continuo y ajustes periódicos en el presupuesto de una organización. En lugar de considerar el presupuesto como algo estático y fijo, se establece un proceso de retroalimentación constante para monitorear el desempeño financiero y realizar ajustes en función de los resultados obtenidos. Éstos se basan en la idea de que el presupuesto inicial es una estimación que puede requerir cambios a medida que la organización avanza y se enfrenta a nuevas circunstancias. La retroalimentación se obtiene mediante el análisis de los resultados reales en comparación con las proyecciones presupuestarias.

In my experience, having a control team that will identify the reasons behind planning changes will deeply increase the success of your budget feedback process.

A budget feedback loop not only aids in financial oversight but also fosters a culture of continuous improvement. By regularly examining variances, organizations can become more agile, responding to changes in the competitive landscape swiftly. This loop encourages proactive management, where insights lead to informed strategic decisions, such as cost-cutting or reinvestment. It also promotes accountability as teams understand the impact of their actions on the organization's financial health.

Business lines and budget owners are key data points when budget is built initially. Thereafter a control team monitors actual performance against budget. Whilst investigative reasons can be identified where there are significant variations, a key position that can validate the base assumptions is a Finance Business Partner, who understands the broads reach of the business in addition to how the numbers dwell into Finance.

Algunos beneficios que le veo: - Mejora en la toma de decisiones financieras: Permiten un seguimiento constante del desempeño financiero y la comparación con los objetivos establecidos. - Ajustes y optimización del presupuesto: La retroalimentación continua proporcionada por estos bucles brinda información valiosa para realizar ajustes en el presupuesto. -Identificación temprana de problemas: Brindan una visibilidad constante del rendimiento financiero, lo que ayuda a identificar problemas o tendencias negativas de manera temprana.

Budget feedback loops act as your financial compass, ensuring you stay on course amid the twists and turns of business. By scrutinizing budgeted versus actual results, these loops provide invaluable insights. They're like a strategic co-pilot, guiding you through market shifts and unexpected detours with the benefit of enhanced financial planning, sharper decision-making, and adaptability to evolving scenarios. With budget feedback loops, your business isn't just driving—it's navigating with precision and turning challenges into opportunities.

Algunos desafíos: Recopilación y análisis de datos: Implementarlo requiere un sistema sólido de recopilación y análisis de datos financieros. Esto puede ser un desafío si la organización no cuenta con los recursos tecnológicos y las capacidades analíticas necesarias. Resistencia al cambio: Introducir una cultura de retroalimentación y ajuste continuo del presupuesto puede encontrar resistencia dentro de la organización. Coordinación y comunicación: Requiere una coordinación y comunicación sólidas entre los diferentes departamentos y niveles de la organización. Esto puede ser un desafío si no se establecen los canales adecuados y no se fomenta una cultura de colaboración.

Another challenge that might happen is team resistance, that is when the internal organization is not aligned with the objectives and poses obstacles to the budgeting process.

By designing premortem analysis, you will be able to anticipate problematic situations, and increase the level of engagement of your team and stakeholders.

Given the changing face of Finance, A Finance Business Partner can understand the business dynamics as well as the Budget process and can be key to identifying any assumptions that are not realistic, making an effective base budget. Ideally a deviation from budget due to external "unpredictable" factors are the only reasons that should take a majority of the management's time and resource.

Budget feedback is sometimes important, but don't forget to look at the overall trends and remember that differences will even out over time. You don't want to adjust your core budget based on a rare occurence/outlier, but instead treat it as an outlier!