Proper cost allocation through proper budgeting practices and techniques are a key aspect in determining the feasibility of an organization’s operational prowess. For sure, approaches to such practices will vary and will entirely depend on the decision of the top honchos of an organization.

Above all, it must be defined on whether they are after total awareness or purely profit and to immediately gain returns from the different engagements that they have invested on. It is certain that most people and prospective investors would want to realize returns at the earliest possible time to be able to appreciate where they have brought their money, and losses, while notably normal, is something that most people would want to avoid at all times.

For some sectors, preparing for initial losses at the start of operations is normality. But the question that lies is up to when will these losses be appearing on the financial statements and management reports? This duty becomes the sole responsibility of the general and operations manager assigned to lead the organization towards new heights. The effectiveness of the chosen person can be easily measured. Matching actual performance towards projections that have been set by the team will spell the difference and become the gauging point on whether the right person has truly been hired to do the job.

In worst case scenarios, realizing that a person is not fit for the job or is underachieving becomes a cause for consideration on moving on towards another direction through the use of other approaches and ideas coming from a more credible individual. While constraints such as operational expenses and budget allocations can be considered hindrances to this, these should be used as barriers and challenges to help bring out the resourcefulness of the person to be able to cope up with the different scenarios to which companies will surely be exposed to. Mixing all of these factors together will provide the said person a more adept and flexible way of approach. Being able to cope up with these will definitely bring out the best and worst from the said person. The final evaluation for the performance of such will hence be in the hands of the top management of the company, something that will surely be a tough decision that is critical for the good of the company.

Useful Article Links:

Top Ten Reasons Why Businesses Succeed

Five Defining Characteristics of Great CEOs

Originally posted on May 30, 2006 @ 1:14 am


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