Resources Platform for Management Consultants

Budgeting

Budgeting is key to boost competitiveness as it aims to optimize the alignment of resource allocation with strategic goals. As for re-engineering, making effective resource allocation decisions requires a deep analysis of which activities should be eliminated, which activities should be performed, and how to perform these activities. It requires a quantitative costs/benefits analysis of alternative options such as automation, streamlining, standardization, outsourcing, offshoring. As for many financial estimation techniques, the ROI of certain activities such as R&D can be difficult to estimate and might only make sense if the client is receptive to long-term returns. 

 

Method:

  1. Identify clear strategic plans and cost targets
  2. List facts and figures for the different activities and business units, including all expenditures and how they relate to revenue streams
  3. Define an “ideal” state and essential activities
  4. Optimize and/or reengineer/redesign the future state and set of activities
  5. Ensure client acceptance and reset budget accordingly

 

Methodologies

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