Improving the client budget policy and procedures for the JM Consult division
Date of Publication
Master of Business Administration
Ramon V. Del Rosario College of Business
Decision Sciences and Innovation Dept
Divina M. Edralin
Budgeting plays a very important role in management planning and control. An effective budgeting system helps managers perform exceptionally. In the context of business management, a budget is defined as managements financial expression of plans for a forthcoming period. It is a written plan for the future. Budgeting is considered not only as a tool in planning but as well as a tool in controlling. Planning is future oriented. It is about setting specific goals in a given time frame and employing the best strategies in pursuing these goals. Controlling encompasses the implementation of action plans to achieve goals and the corrective actions needed. Furthermore, budgeting or profit planning is considered the most effective way to consistently meet profit targets while managing costs. At SuperGuardian Corporation, I have realized that our JM Consult division did not have clear client budget policy and procedures in managing clients and performing client related activities. Consequently, our division incurred net losses and yielded unfavorable efficiency variances where the actual time and costs to perform a job exceeded the budgeted allowed in order to make a profit. It also impacted the quality of service that we rendered to our clients. To address the issue, I have undertaken an action research on improving the client budget policy and procedures with a goal of increasing our profit starting 2015. In the process of conducting an action research project in our company, I was able to enhance our budgetary control system through the establishment of clear client budget policy and procedures. To guide me in designing the necessary interventions, I have applied the concept of standard costing as a budgetary control system as well as the use of change management models such as Mohrman and Cummings Self-Design Strategy model (Cummings & Worley, 2001) and Guhas Process Reengineering Life Cycle (PRLC). This action research was carried out in collaboration with our internal stakeholders and external business partners. In the course of conducting this action research, I did not only collaborate with my manager and colleagues but also with our external business partners namely the lawyers handling the incorporation of our clients, the bank managers whom we do business with and other external stakeholders. The outcome of this action research on improving the client budget policy and procedures translated to positive profits for the JM consult division starting the first quarter of 2015.
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computer optical disc.
Sanchez, G. (2015). Improving the client budget policy and procedures for the JM Consult division. Retrieved from https://animorepository.dlsu.edu.ph/etd_masteral/4976