What is the role of monitoring in ensuring that team members stick to plans and deliver desired results?

A budgeting model can be used to forecast future financial trends by helping senior management predict what the company must do to deliver stable earnings per share (EPS) trends. It allows each business department and function to execute the plans that will add up to the targeted total. The model also helps monitor activities within each department to ensure the team members stick to plans and deliver desired results. Furthermore, it can shift the focus from financial precision to strategic success by turning the targeted outcomes into strategic portfolio guidelines that drive the budgeting and adaptation process. Lastly, it allows for faster and more frequent planning, which can alleviate stress over budget accuracy.

Implementing a budgeting model has several long-term benefits. It helps senior management to forecast and control the company's activities more effectively, ensuring stable earnings per share (EPS) trends. It shifts the focus from financial precision to strategic success, allowing for better resource allocation based on strategic portfolio guidelines. It also enables faster and more frequent planning, reducing stress over budget accuracy and allowing for necessary adjustments.

A budgeting model can improve the efficiency of a company by providing a structured way to forecast and control the company's financial activities. It helps in setting clear targets and monitoring the progress towards achieving these targets. It also allows for strategic allocation of resources and facilitates frequent planning and adjustments as per the changing business environment. This leads to better financial management and improved operational efficiency.