We’re so proud of Nana Yankah for receiving her MBA from Emory University! She’s been hard at work for over a year juggling her client commitments and coursework, and now she’s looking forward to weekends free of case studies and assignments.
Congratulations to Nana!
Recently our very own Kate Blanchard was certified as a Project Management Professional (PMP). To qualify, Kate had to have the required academic credentials as well as 4,500 hours of project management experience. She also had to take the 200-question PMP exam which she passed with flying colors.
Congratulations to Kate on her accomplishment!
Last month we highlighted the CFO magazine article “Freed from the Budget”, where companies discussed how they have eliminated the budget process from their companies all together. As expected, this controversial topic drew lots of opinions from finance and accounting leaders. What they learned was that many of the challenges to having an effective budgeting process had less to do with budgeting issues and more to do with the tools and techniques required to actually develop the budget.
One reader, Miles Ewing – Deloitte Consulting Principal, shared his ideas of how to develop an effective financial performance management process:
Do you have other ideas on how to make budgeting work for your organization?
According to a recent article in CFO Magazine, companies are embracing the idea of eliminating one of their most time-consuming and hated processes – developing a corporate budget. “Freed from the Budget” discusses companies of all sizes and industries that have eliminated their budgeting practice in hopes of finding a better way to run their businesses. Much of the discussion revolves around the ideas extolled by Steve Player, managing director of the Beyond Budget Roundtable (BBRT) – a group of corporate finance leaders that share ideas on performance management.
As part of BBRT’s message about the problems with budgeting, they’ve developed a list of 10 Reasons for Replacing the Budget:
1. Budgeting prevents rapid response to unpredictable events.
2. Budgeting is too detailed and expensive, absorbing around 20% of management time.
3. Budgeting is out of date within a few months. Key assumptions change frequently, causing confusion and rework.
4. Budgeting is out of kilter with the competitive environment.
5. Budgeting is divorced from strategy. Budgets are based on functions and departments rather than strategic themes.
6. Budgeting stifled initiative and innovation.
7. Budgeting protects non-value-adding costs. Cost budgets are usually compiled and agreed on based on prior-year outcomes.
8. Budgeting reinforces command-and-control. Budgets were designed to enable functional leaders to manage the organization from the center.
9. Budgeting demotivated people.
10. Budgeting encourages unethical behavior and increases reputational risks. Aggressive targets and incentives drive people to meet the numbers at almost any cost.
While the article highlights a handful of companies, most are wary to eliminate this essential business task. So, what do you think – are budgets a thing of the past, or do they have a relevant place in an organization?
Tom, Deanna and Carnell
Over the past year we’ve had lots of changes, but none more exciting that welcoming our newest professional services team members this summer!
Carnell Sanders joins our professional services team with over 10 years of experience as a practicing cost accountant. He’s worked in both staff and plant roles at companies include Dendreon, Solvay Pharmaceuticals and Rohm and Haas where he was responsible for operations accounting, analysis and reporting. In addition, Carnell has worked on both SAP and Oracle implementation teams with financial, manufacturing and inventory modules.
Carnell received his Bachelor of Science of Business Administration from East Carolina University with a focus on Accounting and is currently pursuing his Master of Business Administration at Keller Graduate School. In his free time, he loves to spend time with his fiance’ Denise and his son (18 yrs) and daughter (4 yrs). He joins the ranks of avid motorcyclists at 3C Software, coaches youth basketball and loves to play poker.
Deanna Oaks has worked in the accounting field since 2002 with many years of experience in cost accounting. Her past cost accounting roles include BeverageHouse and Applied Thermoplastic Resources where she was responsible for operational cost analysis, variance analysis and reporting.
Deanna is a graduate of University of Phoenix with a Bachelor of Science in Accounting. Outside the office, Deanna loves to write (check out her collection of poetry, “Lost Loves…Found Strength“) and is a theater technician at The Dallas Theater. She and her husband Matt are horror movie aficionados, and they love to travel and spend time with their daughters Berkelly and Nikki.
Since 1979, Tom Giek has been passionate about cost accounting and technology. With cost accounting and management roles at companies including The Leslie Fay Company, Bayer Clothing, Coloplast and Integrated Merchandising Systems, Tom has experience in all facets of operational accounting and has worked in multiple JD Edwards’ environments.
Tom is an alumni of Penn State University, earning a Bachelor of Science degree in Accounting. Away from the office, he loves to spend time in the kitchen cooking gourmet meals and entertaining family and friends.
