HBR 20-Minute Manager Boxed Set (10 Books) (HBR 20-Minute Manager Series)

47

Preparing a Budget

A

budget is a fi nancial blueprint for achieving

business goals.

Your unit’s budget is part of the com-

pany’s overall strategy, so you need to understand the

company’s strategy in order to create a useful budget.

There are several steps you can take to increase your

strategic understanding:

• Pay attention to communications from senior

management. Most companies try to commu-

nicate at least the basics of their strategy to the

entire organization.

• Watch the overall economic picture. A company’s

strategy during a recession will differ from its

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Finance Basics

48

strategy ...