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Podcast: The Winning Momentum Podcast with Scott Sinclair
Episode: Corporate Budgeting Is Bad For Growth and Introducing Season 2 of Martinis With Scott
Description: Annual budgets are a terrible tool to influence employee behavior and performance. In fact, because they are typically based on prior year, they tend to reinforce existing ways of thinking. If your business is troubled, using the past as a guide is not good.Budgets are also not helpful as a numerical business plan because they are static. What happens if you have material negative variances in period one? A far better tool for planning and managing is a dynamic rolling monthly model. See a post on this HERE.Notwithstanding the problems with static budgets...