Client case study: Building the right business result

The issue

A leading consultancy decided to enhance its ability to tackle the root causes of clients’ budgeting difficulties and improve its implementation of new budgeting and control processes.  Skill in practical implementation rather than theoretical knowledge was the primary need.

The action

Using one of our practical business simulations as the base, we wove budgeting techniques and challenges into the fabric of the business scenario.

In the simulation, businesses were made up of around five people, with up to six businesses competing in an industry at the same time.  The teams’ goal was to negotiate through the maze of interlocking decisions and arrive at a business plan for all the functions that delivered the business’ strategic intent. Their own plans were the starting point, but they had to adjust their expectations in the face of competitor response, sharpening their attack or developing their defence.

Initially, teams worked in isolation to develop their budgets and targets, but failed to create a coherent and achievable plan for the business.  Only when they came together did they identify the true implications of their strategic plan and the barriers to achieving it.  As variances emerged, their causes became clear and highlighted the best course of action.  Teams quickly realised that when budgeting is treated as a genuinely important commercial management tool, it becomes integral to commercial success.