Effective Management: 20 Keys to a Winning Culture

Chapter 13   Budgeting Downfalls

Every organization needs a budget to help guide their activities. A meaningful budget begins with an attempt to estimate potential revenues. This measure comes from the sales forecast, of course, and then it can progress to answering the question “What resources do we need to attain these revenue targets?” These are the basic underlying drivers of the budget process, and I don’t need to get into the nuts and bolts of this here. Instead, let me point out some vagaries of the budgeting process itself that many organizations face, and the most common mistakes made by managers in getting through the budgeting process. ...