What are the best ways to stay informed about operating budgets and performance measurement?

1 Understand the budget process

The first step to staying informed about operating budgets is to understand how they are created, approved, and updated. The budget process may vary depending on the size, structure, and culture of your organization, but it usually involves setting strategic priorities, identifying revenue and expense sources, allocating resources, and monitoring results. You should be familiar with the roles and responsibilities of different stakeholders, the timeline and deadlines, the assumptions and constraints, and the tools and methods used in the budget process. This will help you communicate and collaborate better with others, as well as anticipate and address any issues or changes that may arise.

2 Review the budget reports

The second step to staying informed about operating budgets is to review the budget reports regularly and thoroughly. Budget reports are documents that compare the actual results with the planned or budgeted figures, and show the variances and explanations. You should review the budget reports at least monthly, or more frequently if needed, and pay attention to the key indicators, such as revenues, expenses, cash flow, profitability, and efficiency. You should also analyze the causes and impacts of any significant variances, and identify any trends or patterns that may indicate opportunities or risks. By reviewing the budget reports, you can evaluate the performance and progress of your organization, and make informed decisions and adjustments.

3 Use performance measurement tools

The third step to staying informed about operating budgets and performance measurement is to use performance measurement tools that can help you track and improve the outcomes and impacts of your activities. Performance measurement tools are methods or systems that collect, analyze, and report data on the performance of your organization, such as its goals, objectives, strategies, processes, outputs, and outcomes. Some examples of performance measurement tools are key performance indicators (KPIs), balanced scorecard, dashboard, benchmarking, and evaluation. You should use performance measurement tools that are relevant, reliable, and consistent with your organization's mission, vision, and values. By using performance measurement tools, you can align your actions with your goals, monitor and report your results, and learn and improve your practices.

4 Communicate and collaborate

The fourth step to staying informed about operating budgets and performance measurement is to communicate and collaborate with others who are involved or affected by them. Communication and collaboration are essential for ensuring transparency, accountability, and feedback in the budget process and performance measurement. You should communicate and collaborate with your team members, managers, colleagues, clients, partners, and other stakeholders, using appropriate channels and formats, such as meetings, emails, memos, presentations, and reports. You should also share and solicit information, insights, suggestions, and feedback on the budget and performance issues, challenges, and opportunities. By communicating and collaborating, you can build trust and rapport, foster learning and innovation, and enhance teamwork and coordination.

5 Seek professional development

The fifth step to staying informed about operating budgets and performance measurement is to seek professional development opportunities that can help you enhance your knowledge and skills. Professional development opportunities are activities or resources that can help you learn new or update existing concepts, techniques, and best practices in the field of financial management, such as operating budgets and performance measurement. Some examples of professional development opportunities are courses, workshops, webinars, podcasts, books, articles, blogs, and networks. You should seek professional development opportunities that are relevant, credible, and accessible to your needs and interests. By seeking professional development opportunities, you can expand your horizons, improve your competence, and advance your career.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?