Many economic indicators are flashing red. Four out of five turnaround and restructuring experts tell us that they foresee a recession in their region; three out of four expect major changes in industry structure. Companies are entering the planning and budget season at a time of high uncertainty — the “will it or won’t it” period that could precede a big downturn.
Setting Your Annual Budget Amid Economic Uncertainty
Four steps to prepare your company — before it’s too late.
September 01, 2022
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Summary.
Budgeting-as-usual is a poor fit for times of economic uncertainty. The current moment requires drastic action, not a typical process. The authors recommend four steps as part of this year’s budgeting process: Tune up your financial warning system, maximize cash generation, lay out potential downside scenarios (for yourself and competitors), and don’t make the mistake of extrapolating from last year.
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Budgeting Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Budgeting. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Tips, tools, and info for handling the budgeting process.
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New!
HBR Learning
HBR Learning
Budgeting Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Budgeting. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Tips, tools, and info for handling the budgeting process.