Budget season is about to open at most companies that operate on a calendar year, so this is probably as good a time as any to rethink the process. Almost all companies will undertake the construction of a budget this year the same way they did it last year, despite widespread complaints that it is a monumental waste of time. One major reason why budgeting never changes is that it isn’t important enough to be worth serious rethinking. Another reason is that too many vested interests are aligned with the status quo, especially because compensation is tied to budgets. Despite this, I think companies can do better, evolving the process from a finance-centric activity to one that serves the needs of broader business interests as well.
Topics: Budgeting, Business Performance Management (BPM), cash management, CFO, Compensation, Controller, Financial Performance Management (FPM), FPM, Integrated Business Planning, Operational Performance Management (OPM), Planning, Reporting, Sales Performance Management (SPM), Office of Finance, Big Data