Management Rules: 50 New Rules for Managers

CHAPTER 16

NEGOTIATING YOUR BUDGET

Each budget cycle brings a choice:

• Accept the mandated budget and then work like crazy to deliver against a very challenging target; you will struggle for any bonus.
• Negotiate like crazy for one month to get a sensible budget and then have eleven months delivering the budget relatively easily and getting a good bonus.

If you are sensible, you negotiate your budget hard. Here is how.

Anchor the debate early. The planning department may think 10% cost reduction is a good idea. Before they even pronounce, you need to sow the idea that your group is in growth mode and that 20% growth is the very minimum needed to ...