Budgeting is simply making sure that there is enough money to cover all of the outgoings that it will take the business to operate. This must take all financial factors into consideration and has to be accurate.
Benchmarking isn’t a panacea. The only practices that count in planning, budgeting, and forecasting are the ones that help you drive the participation, behaviour change, and accountability you are looking for.
More detail doesn’t necessarily mean better decisions. Increased accuracy at the right level of detail efficiently identify the areas of concern.
When you need to make decisions within the context of an uncertain future, the most effective approach may be the use of predictive models.
It may be time to rethink your approach to planning, budgeting, and forecasting. An effective approach is to focus first on high-level strategic questions, then drill down to tactical choices like level of detail, planning horizons, and internal communications.