Are You Spending Too Much Time Planning and Implementing New Budget Programs?

Are You Spending Too Much Time Planning and Implementing New Budget Programs?

(Houston, TX - March 11, 2008) - APQC has released a metric snapshot of the cycle times required to complete organizations' annual budget processes. The snapshot is based on APQC's Open Standards Benchmarking CollaborativeSM (OSBC) research, which indicates a wide range among the budget cycle times of organizations at the top level (30 days), median level (65 days), and bottom level (120 days).

When you look only at organizations with larger revenue bases (i.e., greater than or equal to $1 billion), the range in cycle times between top, median, and bottom performers gets smaller. For these organizations, the budget cycle time for the top level (60 days) is half the cycle time for the bottom level (120 days).

When you look only at organizations with smaller revenue bases (i.e., less than $1 billion), the median number of days to complete the annual budget cycle is lower than that for organizations with larger revenue bases, but the range between top and bottom performers is about the same.  For these organizations, cycle times required to complete organizations' annual budget processes are 30 days at the top level, 60 days at the median level, and 94 days at the bottom level.

When dealing with the resources involved with strategic planning and the effectiveness of the approval process, are organizations getting better at updating, planning and budgeting for their future state?  The top-performer respondents to this survey are clearly showing a commitment to the process.  However, bottom performers are still taking up to three and four months to complete the budget cycle.

If your organization is interested in finding out at no cost how its cycle time processes compare in terms of efficiency and productivity metrics, we invite you to participate in APQC's planning and management accounting and internal controls surveys.

In return for participation, you will receive a complimentary detailed, personalized report comparing your organization's performance against the OSBC database. Of course, APQC keeps all data confidential according to the rules laid out in the Benchmarking Code of Conduct (www.apqc.org/bmkcode).

  • To learn how your organization can benchmark additional financial management areas at no cost, visit www.apqc.org/fm. Available surveys include: accounts payable and expense reimbursement, finance organization, fixed asset accounting, general accounting and reporting, Order to Invoice, Accounts Receivable, and payroll.

 

Media Contact

Liz Greene
214.350.7236
liz@mpdventures.com

Note: Additional metrics, high resolution charts, case studies, and interviews are available to support specific editorial needs.

(The top level is the performance level above which 20 percent of the responses fall; the bottom level is the performance level above which 80 percent of the responses fall.)

(Data Source: OSBC planning and management accounting database, retrieved March 11, 2008)