The Finance Transformation

Steve Player BUDGETING & REPORTING: Finance expert Steve Player supplies the Business Finance community with...more

Of Government Shutdowns, Ships, and Budget Targets

A Treasury department official told reporters yesterday (according to this report) that a brief government shutdown may be necessary as the only way to de-escalate the standoff between Republicans and Democrats on Capitol Hill over government spending.


Will our politicians be able to agree on another stop-gap measure to keep the “washing machine” — I mean the government — operating for a few more weeks? If not, the government will begin shutting down and furloughing employees. House Republicans are working on a new extension that would give lawmakers a couple of weeks to develop a more comprehensive agreement on funding for the rest of their year (which ends on Sept. 30th).


Party politics aside, I want to know what you think: Does a government shutdown really help?


This behavior suggests that an organization – in this case, the federal government – is like an electrical appliance that can be turned off and on. By switching it off, our leaders halt the outflow of energy (and the related cash that goes with it). more

Are You Ready When They Predict Snow?

The snowstorm gripping the country reminds me of a visit to Minnesota earlier in my career. We were scheduled to make an early morning presentation in Marshall, which is about a 3-hour drive west of Minneapolis.


As our team gathered, I noticed that my good friend and colleague Scott Wallace had brought a small bag and an extremely large bag that was stuffed full. I thought he was bringing his hockey gear for a good workout and began to joke with him about how much he had packed for a simple overnight trip. He then explained to me about his “snow bag” and how things worked in the north. more

Super Week for the Super Bowl

I had a great week planned. It was perfectly lined up to visit customers and customer targets one right after the other. I just had to make my early plane and then stay on schedule. I arose early and made the first flight on time. And then it hit.


The weather reports had warned of a major snowstorm crossing the country. I arrived in Washington, D.C., and successfully made the first three appointments. As the weather grew darker, it began to snow. I wrapped up dinner early and decided to drive south to Richmond for the next day’s first meeting. more

The President Agrees: Stop Doing Dumb Stuff (II)

As I mentioned in my previous post, I am happy to see the President so eager to attack Dumb Stuff. I am, too.


President Obama’s column on his regulatory review contained several points that double as guidance for business executives and managers reviewing their annual budgeting process for signs of intelligence:


Root out processes “that are not worth the cost”: The Hackett Group reports that organizations spend 25,000 person days per $1 billion of revenue on their budgeting process. That’s a lot of people — and a lot of cost. Big chunks of that time are spent negotiating goals and arguing over assumptions. Budgeting can take 3 to 6 months to negotiate and gain the necessary approvals.

Is it worth the cost? more

The President Agrees: Stop Doing Dumb Stuff (I)

I noticed that President Obama’s poll standings have rebounded as he focuses more on the economy. Earlier this week, The Wall Street Journal published an op-ed column that the President authored in which he called for a review of all government rules and regulations to “root out regulations that conflict, that are not worth the cost, or that are just plain dumb.”


This is excellent advice – not just for regulators, but for business leaders and managers, too. Regular readers know that I have often emphasized the need to stop doing dumb stuff. The traditional annual budgeting process, of course, tops my own Dumb Stuff List.


Let’s see how President Obama’s list of dumb regulatory practices (and corrective guidance) applies to the traditional budgeting process … more

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