The Art of Client Service

Chapter 19Build a Better Budget

I'm not good at math. I nearly flunked algebra in high school. Forget calculus.

I never liked budgets much. I think of myself as a words person. No wonder there is nothing on the subject in the previous edition of The Art of Client Service.

But if you were to draw a four box grid, with the vertical axis that reads from “boring” at the top to “exciting” at the bottom, then follow this with a horizontal axis that reads “unimportant” in the left and “critically important” on the right, budget building would be in the upper right-hand quadrant, meaning “boring but critically important.”

Formulating a budget ranks among the very most important but least appreciated or understood aspects of being in client service.

Let's say you do a budget that is well above the actual expense on an assignment. Money allocated for a project that doesn't get spent often winds up wasted; everybody loses. Your client concludes one of three things: (1) “These guys don't know what they're doing”; (2) “These guys clearly pad their budgets; I won't trust them in the future”; or (3) both.

Ever do a budget where the number you estimated comes in lower than the actual amount you spend, and, as a result, you have to ask the client for more money? How did that conversation go? I thought so.

Do a budget well, meaning a little above the actual expenditure, and your client is satisfied, your agency makes money, and you get to work another day.

Do a budget badly, meaning substantially ...