In the agency that I led, program managers were responsible for maintaining revenue and controlling program costs and program staff compensation. When more money was needed, we talked about which of Five levers they might use - 1. Increase revenue, 2. Reduce program supplies, 3. Reduce hours, 4. Reduce rates of pay, or 5. Reduce number of staff. If they made a good case that none of those levers were available, then the C-Suite group added the cost to their 5 Responsibility Areas of Marketing, Taxes and Benefits, Administrative and Leadership Compensation, Building Costs, and Office Costs. The rationale is that Program Managers have more control over variable costs and the Senior Managers have to cover Fixed Costs and Special Needs.

Managing expections and requests is all about collaboration and communication: ⏩Work together to optimise resources. Involve your program managers in the budgeting process. ⏩Clearly communicate financial constraints. ⏩Encourage detailed justifications for funding requests. ⏩Highlight the impact and necessity of each request. ⏩Evaluate requests based on alignment with organisational strategy, goals, and potential outcomes. ⏩Consider alternative funding sources or cost-saving measures. ⏩Foster a collaborative environment. ⏩Ensure everyone understands the financial landscape.

Clear and transparent communications with the team and board of directors is key. Your team is invested in the work, they might be able to identify funding sources or connections. Staff can also identify potential efficiencies in programs.