Chapter 8 Discussion

Chapter 8 is about budgets, which no one likes to think or talk about, but are nevertheless essential to obtain funding. This chapter is not immediately relevant for most of us, since we are writing proposals for our master's theses. Still, all of us will likely deal with budgets sooner or later, whatever line of work we find. We may even seek funding for our theses. I found this chapter to be one of the most practical, especially for someone like me who has little experience dealing with money.

Some points to think about:

1. In every section in this chapter, Johnson-Sheehan mentions the importance of finding a good accountant to help manage all the money issues. The book seems to be directed at companies large enough to have a team of people working on their projects. But what about individuals or smaller firms who have to do all the number crunching themselves? For example, most of us are working on individual proposals. If we want to obtain funding, we'll have to develop the budgets ourselves. Does the book give us enough information to make this possible? People obtain advanced degrees in accounting and take exams to become certified. Is there any hope for the rest of us, or should we just give up and wait until we can afford to hire an accountant before taking on projects that require significant funding?
2. The section on indirect materials struck me, because it's a topic I might not have considered before. There is a tendency to think that office supplies are limitless. But working in the MATRF, I have seen that this is not the case. We have been trying to buy what most of us feel are some basic necessities like a vacuum cleaner and conditioner for the white board. But apparently, the MATRF is not included in the maintenance budget for the English department. While direct materials (hardware and software) are included in our budget, indirect materials are not. So when all the other classrooms in Daniel got new white boards, the MATRF was excluded. The $35 lab fee helps us buy some office supplies, but it doesn't seem to be enough. A computer lab may have the best technology available, but without basic office supplies we cannot be as effective. Our image is also effected when there are crumbs all over and the white board can't be properly erased. What can we do about it at this point? Is it possible to try to get funding for indirect materials after the fact, or do we have to live with what we have?
3. The section on travel seems to be advocating deceit. On page 151, it says that we should ask a hotel for it's rack rate, which is usually more expensive than what it will actually cost. We should give this inflated number to the client, stay at the hotel at a cheaper rate, and then pocket the difference. This struck me as immoral, but maybe I'm too honest to make it in the business world. I'm never able to mislead people in any way. So, is my conscience too strong? Should I just try to obtain the most money I can using whatever means I find necessary? What do the rest of you think? I'm particularly curious to hear from those who have experience in business. In the business world, is it necessary to sacrifice principles to gain success?