Within the current economic climate, where funding is being cut back, the temptation is to simply batten down the hatches and scale back operations.
The problem is you are likely to put your organization on a slippery slope where cutbacks lead to decreased customer satisfaction and decreased staff morale, leading in turn to further cutbacks.
For 2012/2013 many organizations are still operating in downsizing mode whereas a few are seeing light at the end of the tunnel and are looking for ways and means to ramp up their operations.
Regardless of your current operational M.O. it makes good sense in the current economic climate to adopt a “more for less” approach to budget preparation.
If you are downsizing, try to first increase efficiency/effectiveness before you downsize. If you are planning a ramp up, try to first increase efficiency/effectiveness before you ramp up.
At the end of the day, “more for less” budgeting requires taking stock of corporate assets (customers, capital, human resources, processes, other infrastructure) with a resolve to re-structure, re-organize and re-deploy these assets.
Remember that efficiency (e.g. doing things right) is not the same as effectiveness (e.g. doing the right things) and it follows that you always have the option of “doing the right things the right way” which holds the promise of producing a better outcome than doing one or the other either alone or separately.
You can quickly get up to speed by reading three short blog posts on strategic and operational planning at the following URLs.
The Essence of Business Management Part I at http://wp.me/pzzpB-gr
Infrastructure for Building corporate Strategies Part II at http://wp.me/pzzpB-gD
Infrastructure for Operational Effectiveness Part III at http://wp.me/pzzpB-gG