One of the UK’s leading retailers of electrical and electronic equipment was looking to rationalise a budget process that was too time consuming, too long and ineffective.
It needed expert advice on reviewing and re-designing the budget process, to streamline activities and increase the value delivered – and one of Novo Altum’s consultants provided it.
Within a very limited timeframe his strategy to re-design the planning model and implement an efficient budget framework made the process far less resource hungry, with a far shorter completion time. The client declared it, “the best budget process” he had ever been involved with.
With an existing budget process that took five months to complete and required a significant time commitment from across the business, it was time for a radical re-think. Our consultant could see a number of issues that clearly needed addressing.
The process was driven bottom up, required very detailed information to be collated, and went through a number of iterations before final approval. The situation was made worse by the fact that the budget process clashed with the busiest time of the year for the rest of the business.
It was vital for our consultant to work closely with the client to deliver a process that facilitated true planning discussion within the business, integrating the plans of all the various enterprise units and developing a consensus on targets.
His approach was to adopt a fast track improvement programme using a combination of both in-depth analysis and client collaboration workshops. This would establish a clear vision of the business and its performance drivers as well as evaluating current process. It would then enable a scenario-based planning tool to be built on which a new budget process could be based.
Within just two months, the team led by Novo Altum’s consultant had re-designed the budgeting process and built a planning model which significantly cut the completion time – from 16 to 8 weeks – easing the strain on resources ahead of the forthcoming year’s budget.
By using workshops as a means of engaging closely with the senior management team, our consultant was able to lead them quickly but thoroughly through the process of developing a top down budget, which would improve efficiency across the whole business.
The incumbent Finance Director described the result as “the best budget process” he had been involved in.