The Matrix Budget, (Matrix Expense Management – GMD) is a methodology that contributes to greater budget control and financial resources, effectively helping to implement the company's strategies.
More than a budget control, it is a management model where there is greater responsibility on the part of the company's executives, who effectively have to take greater managerial action to achieve the established objectives.
Like all budget planning, ideally it starts from a strategic plan, or a medium-term strategic objective. It considers that, in order to effectively execute a strategy, we must have the following integrated guidelines:
Where:
Strategy - is related to the long-term goal for the organization:
Eyesight
Mission
Values
Strategic objectives
goals
Indicators
Leadership - A well-defined organizational structure that takes into account the following aspects:
governance
executive leadership
Adequate organizational climate
Organizational culture
people's potential
Knowledge - Capable team with knowledge in performing the following activities:
finance
Human Resources
Logistics
manufacturing
Marketing
Sales etc.
In the elaboration process, we will have the following steps:
In the Matrix budget we will have:
Detailed examination of expenses;
Specific reduction targets for each area;
Challenges compatible with the earning potential;
Burden of proof on managers.
Budget management is carried out through the PDCA
Matrix Budget Principles
Cross control
Focus on Spending Breakdown
Systematic Monitoring
Expenses controlled by two people (owners of entities and packages)
Expenditures are broken down to the level where they are made
Effort directed from systematic comparisons and detailed control of expenses
Entities - Cost Centers
Treasury
Quality
PCP
Commercial
Salaries and
Charges
P
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and
s
Travels
Maintenance
Facilities
Liability of Cost Center Owners
Systematic Monitoring
cash management
Audit and Procedures
Expense Control Meetings
Package Liability
If your company is interested in implementing a budget model that really has conditions to align the budget process to execution in your company, please contact us. This methodology, in addition to improving internal controls, will be able to generate a great reduction in costs!