Read our thoughts on traditional budgeting in this article featured on CFO.com June 26, 2019:
Breaking The Budget
Quickly obsolete numbers, endless revisions, "gaming" of bonus targets — traditional budgeting is a poor guide to strategic decision-making.
"Despite the constantly churning mechanisms of business, the traditional budgeting process has changed little since the 1920s. An organization can spend months creating a blueprint for the next year and then expend even more effort to stay on that defined path—regardless of whether the initial assumptions were correct. This inefficient process creates static numbers that quickly become obsolete. They also do little to support strategic decision-making. And there are plenty of other major flaws of the century-old approach..."