Whose money are you really spending?
Managers are responsible for their department budget, and must look to reduce expenses where possible, while maintaining quality and quantity and concurrently working to increase revenue. Managers set budgets with the Financial Controller and other senior staff, and monitor their weekly spending (assisted by reporting and analysis from the Accounting department).
Professional managers know that running a lean business is key to success, thus aggressively monitor expenditure, and the whole company’s financial performance. Managers always balance the need to make profit with the other company goals of Sexy and Frictionless.
Managers work to ensure their staff understand commercial realities – that there is no “bottomless pit of money”, the concepts of return on investment, and risk appetite. To assist in this, managers delegate budget responsibility for specific projects to trustworthy employees (ensuring checks and balances are in place) to increase their responsibility levels.
Managers only spend money on things that are within their approval level, and help the company reach its objectives.