Budgeting no longer helps organisations to perform better. On the contrary. It prevents organisations from performing to their full potential, because given the level of volatility, uncertainty and ambiguity in the world only thing we know for sure is that we don’t know. “The future ain’t what it used to be”, as the American baseball player Yogi Berra once put it.
In this article, Steve Morlidge argues that the quality of business forecasting is unacceptably poor. He goes on to present six simple principles that will help executives significantly improve the performance of their forecast processes.
Many millions of people are stuck with the habit of smoking. They know its bad for them and it will eventually kill them, yet they continue.
In a previous blog post, I mentioned that people who are highly sensitive to the lack of flexibility of traditional budgeting often see rolling forecasts as the answer. So, you might think, forecasts are like budgets but done more frequently – right?
It’s difficult to think of a business process that is more unpopular than budgeting. In nearly two decades of writing and talking on the subject, I have yet to come across anyone who is prepared to stand up and say it is a good thing.
Why, when everyone hates it, do we still have traditional budgeting? My tentative answer to this would be that most people were not aware of the alternatives.
Pagination
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Budgeting no longer helps organisations to perform better. On the contrary. It prevents organisations from performing to their full potential, because given the level of volatility, uncertainty and ambiguity in the world only thing we know for sure is that we don’t know. “The future ain’t what it used to be”, as the American baseball player Yogi Berra once put it.
In this article, Steve Morlidge argues that the quality of business forecasting is unacceptably poor. He goes on to present six simple principles that will help executives significantly improve the performance of their forecast processes.
Many millions of people are stuck with the habit of smoking. They know its bad for them and it will eventually kill them, yet they continue.
In a previous blog post, I mentioned that people who are highly sensitive to the lack of flexibility of traditional budgeting often see rolling forecasts as the answer. So, you might think, forecasts are like budgets but done more frequently – right?