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The job of any C-level executive involves guiding a strategic direction around the mission of the organization. But regardless of the size of the company, the budget has to be able to exist or grow to sustain the vision.
Here's how to make sure the company mission is aligned with the funding with the right checks and balances to counteract unwise risks:
- Identify the goals and the resources necessary to achieve them. This requires having someone in place that has witnessed the success or experienced the failure to truly understand the time it takes and the quality of the people necessary to make things happen. The result of this exercise should be a blueprint with a timeline including the number of costs associated to each action required to achieve the goal.
- Evaluate the capital. Do not count on contingent funding that may/may not appear on time. Base this on guaranteed account receivables that take less than 90 days to collect or 50% of the promised capital funding or expense allocation or approved business lending with minimal contingencies. Depending upon the costs required for #1, determine what it would take to remain under budget by at least 30% in case funding gets slashed.
- Trim down the long-term goals into finer short-term objectives. Whatever is remaining that cannot be completed will require some prioritization. Give first priority to anything that has high impact and low effort followed by high impact and medium effort. It's better monetarily and morally to have productivity for a goal than to just keep people busy.
There is nothing wrong to envision with a wide view but the person who understand financially how to get there will help narrow the focus for a better chance of success. The vision won't be funny if it is within reach of the money. #checksandbalances
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