30th
Excutive Advice: Always ask for more than you need
1st rule of bad executive budgeting: ask for 10-15% more than you WANT, which should be 20-30% more than you NEED. Unfortunately there is a difference and it’s important.
In order to always get what you need, pad your requests. 2009 and 2010 are going to be very hard years financially. If you can, the easiest way to weather the storm is to pad your requests knowing full well they will likely be cut. It will distract your superious from cutting from what you need to get the job done and more likely give you some additional funds to help weather the storm.
On a good year I expect to be limited to 10% growth compared to the prior year. That’s 10% growth on expenses. Across the board companies are trying to limit their risk on 2009 operating expenses to hedge their bets against diminished revenue. So I asked for 20% growth and “settled” for 8% growth after cuts. That’s still 8% more than I expected to have. The trick is not geting emotionally involved in the 20% scenario…because it will never happen.
