Organization leaders are under increasing pressure to more aggressively manage their budgets… more often than not translatable to cutting their budgets. But budget cuts and the accompanying hoarding or not deploying an organization’s financial resources often impairs the very operations necessary for sustainment and growth. Instead, proactive budget management should be employed.
Proactive budget management embodies the active management and control of financial resources while thoughtfully considering alternative approaches to operations that yield desired outcomes in a more cost effective way. Such management applies the principles of ongoing monitoring, deliberate control, impartial and self-critical assessment, and proactive improvement to the use of financial resources.