Why We Like to Play with Shiny Toys

Are these fads and fashions or the real deal? Are CFOs attracted to them as the shiny new toys they must have on their resume for their next bigger job and employer? My belief is these four “hot” managerial methods and tools are essential. But they need to be thought through and properly designed and customized; and not just slapped in willy-nilly just to have them as shiny new toys.

What are these “four hot tools”, you ask? Read on for insight by author Gary Cokins.

Budgeting: Steve Jobs or Bill Gates?

According to a recent survey (multiple surveys in fact) most organizations are still using Excel for budgeting. Part of the explanation for that, of course, is “it’s free”. But it’s also because we in Finance have a bias for spreadsheets. No self respecting accountant or finance professional would back down from the challenge of building a budgeting process using Excel (Bill Gates is smiling, I can feel it).

The Missing Link: Budgeting and Execution

There are two primary purposes of budgeting. The one most people think of first is to put a cap spending. But that’s only one reason why organizations (and people) budget.

The other reason why organizations budget is to ensure what’s important gets done. And let’s face it, just because something is important doesn’t mean it will get done. Unless it’s properly resourced and funded, it won’t happen. So let’s examine that crucial link between budgeting and execution.