How do I set up my budget targets?

Budgeting your targets

Choosing the correct intention and methodology is a key step in tracking your plan properly.  Evaluate the following scenarios and see which one applies to your budget. 

  • Increase, Begin at Zero:
    • Example Scenario: You are trying to increase the amount of revenue or customers during your new plan. Your count will begin at zero when you start monitoring your progress.
    • Fields Selected: Intention = Increase, Methodology = Begin at zero towards a target
    • Baseline: You may decide you want to measure your progress against historical data, if that is the case, then you will enter a number in the Baseline field. Otherwise, you can enter 0.
    • Status Lights: Will be green when you are exceeding the estimated progress you should be making to hit your Target.
  • Increase, Begin at Baseline:
    • Example Scenario: You are trying to improve your customer satisfaction rating. You will begin measuring your progress from your current satisfaction numbers.
    • Fields selected: Intention = Decrease, Methodology = Begin at baseline towards a target
    • Baseline: You will enter your starting point as your Baseline.
    • Status Lights: Will be green when you are exceeding the estimated progress you should be making to hit your Target.
  • Decrease, Begin at Zero:
    • Example Scenario: You are trying to decrease the amount of money spent on a particular department. Your count begins at zero when you starting monitoring your progress.
    • Fields Selected: Intention = Decrease, Methodology = Begin at zero towards a target
    • Baseline: You may decide you want to measure your progress against historical data, if that is the case, then you will enter a number in the Baseline field. Otherwise, you can enter 0.
    • Status Lights: Will be green when you are exceeding the estimated progress you should be making to hit your Target.
  • Decrease, Begin at Baseline:
    • Example Scenario: You are trying to decrease average % of defects in your department. You will begin measuring your progress from your current error rates.
    • Fields selected: Intention = Decrease, Methodology = Begin at baseline towards a target
    • Baseline: You will enter your starting point as your Baseline.
    • Status Lights: Will be green when you are exceeding the estimated progress you should be making to hit your Target.
  • Maintain, Begin at Zero:
    • Example Scenario: You may want to maintain a budget for your department where if you spend less than budgeted that is acceptable. Your count will begin at zero when you start monitoring your progress.
    • Fields Selected: Intention = Maintain, Methodology = Begin at zero towards a target
    • The tool will estimate how far along you should be with your spending to stay within budget during the year.
    • Status Lights: Will be green when you are staying within the estimated progress you should be making to maintain between YTD-Baseline and YTD-Target.
  • Maintain, Begin at Baseline:
    • Example Scenario: You may want to stay within an exact range throughout the entire plan.
    • Fields Selected: Intention = Maintain, Methodology = Begin at baseline towards a target
    • Status Lights: Will be green if you are between Baseline and Target.
Was this article helpful?
0 out of 0 found this helpful
Have more questions? Submit a request

Comments

0 comments

Please sign in to leave a comment.