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Neela Sakaria: Thank you for joining us Mr. Rael. Please tell us whom you had in mind as your audience when you wrote your book? Is it only meant for CFO's and CEOs?
Ron Rael: I wrote this book for any manager who is responsible for the budgeting of resources. And this responsibility often falls to the CFO and the CEO. This is whom I envisioned when I wrote it. Yet, my book has tips and suggestions for every budget manager in both the large and small organization.
Neela: What can smart managers do to make sure that games are not played within the company, when various departments are fighting over scarce resources?
RR: There are numerous ways the smart leader can stop games from being played. I have identified at least 20 and my list grows. But in order to prevent these games, all change must start by examining the corporate culture of the organization. Because, and this is very important, budget games start whenever there is something in the corporate culture that allows these games to exist and to continue.
Neela: You mention that smart managers recognize that budgets are used as communication and motivational tools. Can you expand on that for our readers?
RR: The budget is a tool for measuring whether the organization is achieving its mission or purpose. Every firm has a limited amount of resources to spend in order to satisfy its customers and deliver quality service/products. At the beginning of each budget cycle, the leaders must decide their priorities based upon the mission and how much money to spent on them. Therefore, the budget becomes a measuring stick. At the end of each month, the budget status reports are used to analyze how we are doing compared to our original goals and how much we have a spent compared with what we estimated it would cost. This valuable feedback helps us to improve and adapt and is why the budget is a tool for communication. Finally, as a manager, if I am achieving my goals I will be excited and continue doing what I am supposed to especially if I am rewarded. Likewise if I am not doing what I am responsible for, then there is a cost for me for failing to do my job well. I want to avoid this cost. This is how the budget becomes the tool to inspire achievement.
Neela: Let's talk about the actual writing style in the book. How did you decide on the style and structure of the book? (e.g. chapter titles, fun tidbits etc.) Was Elvin Cove involved in that process?
RR: I wanted this book to be an easy read. Most business professionals are so busy and can only devote 10 to 15 minutes to reading something. The book was written so that the reader can grab critical pieces of wisdom quickly and move on to the next thing. As for its style, I studied the business books that are well received today, like "Who Moved My Cheese," and "The Goal." I designed a format that will be most effective for the reader. Elfin Cove Press was not involved in the creation this style. The humor sprinkled throughout the book, is very important because the budget is not taken seriously and this causes many problems. I chose to poke fun because ridiculing the budget is what happens in every company at budget time and can be used as an important teaching point to make the budget more effective. My unusual chapter titles are used to capture people's curiosity and draw them in to reading this book.
Neela: How long did it take to write the book, and are you pleased with the responses you have gotten?
RR: This book took me three years to complete. The first two were spent gathering my courage to write a book. The third year is when I finally put my thoughts down on paper in within my very busy speaking and traveling schedule. My goal now is to use what I learned from this one and author one book a year. I am very pleased at the response, acceptance, and feedback of my book. And sales are great, far exceeding my expectations. I believe that is because nearly all the budget books published today address only the mechanics and systems problems. Mine is the only book that addresses the corporate culture, which needs to be in alignment to support an honest and realistic budget.
Neela: What is it that you hope readers will take away from the book?
RR: My intention is that the reader of this book will use my suggestions and examples to make dramatic improvements in his or her own budget process. The book is designed to be an ongoing Action Plan. Using the tools I provided, the reader will not have to start from scratch but build upon what is already in place.
Neela: Are you working on any future writing projects?
RR: Yes, I'm currently putting the finishing touches on my next book, which is nearly ready for publication. I offer a complete plan on how to leaders can quickly design a culture of ethical behavior that fosters integrity. It will also be in the form of 13 ½ Strategies. My new book will talk about the Gray Zone that exists in every business organization, in which unethical practices start and hide. Following that and already in the planning stage is a book on 13 ½ Strategies to Reenergize the Corporate Culture (or get rid of a Toxic One).
Neela: Why did you use 13 ½ in your Titles?
RR: The Number 13 is considered an unlucky number. And yet that's only a paradigm that people mistakenly hold. Very similar to the assumption that "our budget is a waste of time" or "our budget serves no purpose." I use this to challenge the budget manager's unrealistic paradigms around the usefulness of budgeting as a tool for success. The 1/2 is a critical message for the reader and is one I use to close every budgeting workshop I conduct. "I can give you the most leading-edge information and give you the tools to do your job. I will show you the path to the future and I'll even open the door for you. But the last step of walking into a better future is up to you. You must take the last half step. "
Neela: Thank you for your time.
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