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Beyond Budgeting: How Managers Can Break Free from the Annual Performance Trap

Beyond Budgeting: How Managers Can Break Free from the Annual Performance Trap
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Manufacturer: Harvard Business School Press
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The annual budgeting process is a trap. Pressured by fixed targets and performance incentives, managers focus on making the numbers instead of maximizing potential. With their compensation at stake, managers often resort to deceitful-even unethical-behavior. In the end, everybody loses-the employee, the company, and ultimately the customer.

Now, finance experts Jeremy Hope and Robin Fraser reveal the results of an intensive study aimed at fixing the broken budgeting process.

The Beyond Budgeting model is built on the best practices They argue that companies must abandon traditional budgeting contracts in favor of a radical new model that links performance measurement to evolving competitive benchmarks-and shifts the firm's focus from controlling employee behavior to delivering customer value.

 

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