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Management article
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Reference no. U9901A
Authors: Charles Wardell
Published by: Harvard Business Publishing
Published in: "Harvard Management Update", 1999
Length: 3 pages
Topics: Budgeting;

Abstract

No one looks forward to the budgeting process. It''s most often viewed as an unproductive exercise that steals time from your real job. However, the budget can be a powerful instrument for helping with forecasting, planning, and employee involvement. To accomplish this, you must first reengineer the budgeting process. Then you have to rethink how you use the budget itself. The traditional budget and the budgeting process are not adequate for today''s economy. Some key flaws are the inability to quantify significant metrics such as innovation and quality and the tendency to compartmentalize a company into small units, providing departments with no incentive to look at the big picture. HMU presents a new approach to budgeting by offering a 6-point checklist that shows how to turn your budgeting process, and the resulting budget, into powerful tools. Includes a sidebar on basic tips for effective budgeting.

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Abstract

No one looks forward to the budgeting process. It''s most often viewed as an unproductive exercise that steals time from your real job. However, the budget can be a powerful instrument for helping with forecasting, planning, and employee involvement. To accomplish this, you must first reengineer the budgeting process. Then you have to rethink how you use the budget itself. The traditional budget and the budgeting process are not adequate for today''s economy. Some key flaws are the inability to quantify significant metrics such as innovation and quality and the tendency to compartmentalize a company into small units, providing departments with no incentive to look at the big picture. HMU presents a new approach to budgeting by offering a 6-point checklist that shows how to turn your budgeting process, and the resulting budget, into powerful tools. Includes a sidebar on basic tips for effective budgeting.

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