Around this time of year, most IT organizations start the early process of looking at their next year’s budgets. Unfortunately, companies’ satisfaction with their budgeting and forecasting processes has never been very high. Worse, the number of companies reporting that they are “fully satisfied” with their budgeting processes has dropped by half over the last ten years. Why? The budgets we create very quickly don’t reflect what’s really going on in the business.
This isn’t just an IT problem either; it’s a problem that occurs across the entire organization. In fact, according to our colleagues who work with CFOs, corporate IT is one of the most efficient functions during the formal budgeting process.
While IT manages the up-front budget planning relatively well (compared to other corporate functions), it’s what happens afterwards that starts to cause problems.