Budget Busting

Harvard Business School’s Working Knowledge presents an innovative and slightly scary idea: Throw out the budget.

According to HBS, a “billion-dollar company spends as many as 25,000 person-days per year putting together the budget.” Obviously, there’s something more productive these folks can be doing than going over and over a budget plan, but what’s the alternative?

One solution put forth in the article is quite intriguing: “Housing the budgeting and strategic planning functions in one office, establishing top-down goals three to four years out, and requiring all business units to explore the budget implications of several strategic alternatives.”

In times like these, it’s likely more than the already ridiculous 25,000 person-days are being exceeded in order to rein in costs, but what if your company could redirect even a small portion of that effort and time into exploring new and innovative strategies?