How many people in your organization love the annual budgeting process? Probably none. The mere mention of the word "budget" raises eyebrows and evokes cynicism.
Strategic investment decision-making involves the process of identifying, evaluating and selecting among projects that are likely to have significant impact on the organization competitive advantage. More specifically, the decision will influence what the organization does, where it does and how it does it.
Over the twenty years that I have worked with Beyond Budgeting, I have asked tens of thousands of managers and Finance people all over the world about how satisfied they are with the budgeting process.
Usually I am fairly rational and do not let my personal emotions interfere with how I interact with others. However, as the readers of my blogs and articles may have detected, my more recent writings increasingly reflect my frustrations with old school accountants.
Welcome to this blog series, where I look forward to share with you some of my reflections on what I believe are very important issues for most organisations today.
By Daniele Tedesco, CEO at Apliqo and MD DACH Region at Cubewise
More than 15 years ago, the Harvard Business Review had already declared corporate planning and budgeting as all but dead. “Corporate budgeting is a joke, and everyone knows it,” the business magazine wrote in 2001. The polarizing article generated an enormous reaction. However, little has changed since then.