Wednesday, January 24, 2007

The Irrelevant Budget

This blog is written mostly tongue in cheek. Some points may be informative. Please provide your feedback.
If you suffer from self-irrelevancy, please seek professional advice.

Hello. Why do companies do budgets? It's something that's always puzzled me. Last night I heard of another situation where it was a waste of time for a company to do a budget, because they were hit with an unexpected expense that threw their budget out of whack.
If you ask anyone in business, they'll say a long-range budget now is one year. Most would say 6 months. Find me one budget that accurately predicts the future, and I'll buy you dinner. There is just no way a budget can be planned with 100% certainty. Like a weather forecast, it does the best it can, but there are too many variables to consider.
What would I do instead? Plan to spend any savings on one thing that will greatly improve your company. Provide incentives for employees to leave the company on their own terms. In other words, focus on the right things, and treating people the right way. Don't become as anonymous as the irrelevant budget.

Regards,
Irrelevant

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