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"It's budgeting again"

by Gerdt Larsson, Chairman of the board, 3S

gerdt.larsson@3s.se

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Gerdt Larsson, 3S

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Rarley we hear people say

”I made the decision guessing – and it turned out to be totally wrong”! Instead we claim with an authoritative voice that “ I made my assumptions based on previous experiences, the fact that the conditions had changed could not be predicted.”

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But how accurate is this really?

Could we not have predicted that our reality was changed sinced last month/year/century? I bet that most people who read this text assume that their customers are satisfied; they presume that they will rebuy to the same extent as before. Furthermore they guess that the clients have received enough information to be able to decide regarding the recently introduced product line.

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Now it is autumn again

and then the fog comes. Many of us have to drive slower slower, because we do not know what might await around the next corner. But we do not want to drive too slowly, and end up too far behind our competitors. How fast can you run your organization, how far in advance do you want to be able to anticipate and change? Or how fast can your competitors overtake you, as they acquired fog lights, night-vision and infrared camera?

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The budgeting process

often feels a bit like uncertain terrain, it’s a bit like driving in mist. But there are systems that can provide early warnings and let you know if you are on the right or wrong track. My advice is, measure attitudes and opinions. Check the knowledge and understanding. And do all this frequently and easily.

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It is professional

to say that “I based my planning and budgeting on facts and recent measurements. I just wish that this was how I always made my decisions...

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Gerdt Larsson, 3S