Annual Budgeting Is a Pricey Illusion – Time to Dump It for Good
You don't need a strategy. You need to see the world strategically. Welcome to the newsletter for deep thinkers.
Autumn has arrived, and companies worldwide have kicked off their annual round of that tiresome, pointless, and utterly useless game called budgeting, aka Annual Strategic Planning.
This has about as much to do with planning as rearranging office furniture has to do with a growth strategy.
I believe there is a much better and faster way to save our planet from global warming than green transition and other initiatives: we should cancel annual budgeting.
I am joking, of course.
But the amount of time and effort companies waste on the process is disproportionally large compared to its outcomes.
This article will help you save hours on useless negotiations.
What’s wrong with Annual Strategic Budgeting?
We evaluate athletes by their wins.
We evaluate businesses by their profits.
An executive is assessed by the size of their annual budget.