FORBES: Budgets Don't Work: Here's How Businesses Can Do It Differently
Friday, January 05, 2018
Budgets Don't Work: Here's How Businesses Can Do It Differently
Chief Financial Officer at GL group, leading the financial strategy for the three-division company.
Budgets are traditionally woven into the fabric of most businesses. Everyone uses them. Banks require them. Employees expect them. They are treated as something revered and to be adhered to without question.
But, in reality, budgets are terribly ineffective management tools.
Dwight Eisenhower once said, “Plans are worthless, but planning is everything.” He was referring to war, but the concept applies to business and budgets in particular. When you create a budget, you can do your best to plan for the unexpected, but the very definition of “unexpected” dictates things never happen the way you think they will.
Continue to read the article by following this link: https://www.forbes.com/sites/forbesfinancecouncil/2018/01/05/budgets-dont-work-heres-how-businesses-can-do-it-differently/#41ec1f4946b8