I'm facing a recurring issue at my job where our management never provides a budget for projects, and there's no annual budget either. This leaves all spending decisions up to management's whims on any given day. Whenever I inquire about a budget, I'm told to come up with proposals instead. Is this usual? Should I be getting better at this part of my role? I attempt to gather multiple price options for projects, but it often seems like the cheapest option is the one that gets chosen, resulting in subpar solutions. I try to highlight mid-range and premium solutions, but I'm still unsure if we could've made better choices. Any advice on how to navigate vague requirements from management would be really appreciated!
5 Answers
Yep, it's pretty normal for companies to ask for proposals instead of giving a clear budget. The way you handle it can really set apart good teams from bad ones. When you're asked to present solutions, make sure to clearly state the problem, list your potential solutions with costs and risks, and provide a recommendation based on those options. Think of it like pitching to investors — you gotta show what's in it for them!
Every company has its own quirks. It might help to establish a guideline for what requires a proposal versus what doesn’t. Generally, one-off purchases can have a higher threshold without needing a proposal compared to recurring costs, which impact overhead more directly. Try to bring up the costs involved in creating these proposals versus the actual expenses; it might convince them to streamline the process.
It could definitely be worse! At least you don’t have to justify every single expense throughout the year, which can waste a ton of time.
Typically, businesses want to know how projects tie into their goals, what the ROI is, and what risks come with each option. Getting a budget for transformative projects is tricky — often you need to define exactly what problem your project addresses and present a thorough analysis of each solution's risks and benefits.
Honestly, you just have to deal with it or find a new job. Knowing how to pitch to the right decision-maker is half the battle. It's essential to present reasonable options and steer clear of the low-cost choices that get picked due to budget constraints!
Totally agree! Framing it as a business pitch is key; management needs to see the value for them or they won't bite.