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Chapter from: "Beyond Budgeting: How Managers Can Break Free from the Annual Performance Trap"
Published by: Harvard Business Publishing
Published in: 2008
Length: 25 pages

Abstract

The traditional budgeting process is universally disliked - it takes too long, costs too much, and adds too little value. The budgeting model, and the fixed performance contract that it too often produces, is a deadly virus at the core of many organizations today. If companies hope to remain competitive in a business environment that is subject to discontinuous change, an alternative performance management model is essential. This chapter is excerpted from ‘Beyond Budgeting: How Managers Can Break Free from the Annual Performance Trap'.

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Abstract

The traditional budgeting process is universally disliked - it takes too long, costs too much, and adds too little value. The budgeting model, and the fixed performance contract that it too often produces, is a deadly virus at the core of many organizations today. If companies hope to remain competitive in a business environment that is subject to discontinuous change, an alternative performance management model is essential. This chapter is excerpted from ‘Beyond Budgeting: How Managers Can Break Free from the Annual Performance Trap'.

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