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June 14, 2010 2:52 AM   Subscribe

Corporate Budget Transparency: Long standing difference in management style. Would love to settle a bet. Manage big spend via exception or line item? Is there a demonstrative impact to employees either way?

Big Corporate, many employees. Lots of profits.
posted by Funmonkey1 to Work & Money (4 answers total)
Interesting question, though I need more info to understand it completely :)

Can you elaborate on this: "Manage big spend via exception or line item?"
posted by krilli at 4:04 AM on June 14, 2010

Corporate culture dictates: "Cowboys" keen on tactical risk-taking (exception); "settlers" value long-term plans and accountability (line-item). Important to both: confidence in decisionmakers, communication across hierarchical layers, demonstrable results. Watch out for: auditors, shareholders, taxing authorities . Suggest: heavy investment in grammatical lubrication. (5 GOLD, 2 BRICK, 1 SHEEP, DUCT TAPE.)
posted by seanmpuckett at 4:29 AM on June 14, 2010 [1 favorite]

Oops. big spend via exception means the budget is fine and inform if any deviance or problems with it. Line item is micro-mangement.

This is a difficult ask-me as everyone has different opionions. My experience points towards have budget lets go, yet other industries advocate attention to spend/detail.

Short and long term budgets tend to be spent wholly regardless the corporate accounting. My hope is that employees understand they are not limited by detail, rather a here's your cash meet the strategic objective and let me know if there are problems.

Lately I have run into more and more the type that assume by questioning every spend at line item detail they get better results. I am in no position to run a survey yet am strangely fascinated with the prospect this type of micromanagement yields better results. To me it seems the opposite would be true.
posted by Funmonkey1 at 4:43 AM on June 14, 2010

The micromanagement version will work better if

a) upper management haven't clearly communicated the strategic direction
b) lower management do not buy into the strategic direction and won't comply with it without pressure
c) lower management are inexperienced and may not come up with a realistic budget on their own.
posted by emilyw at 5:12 AM on June 14, 2010

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