Budgeting Can Break a Business

Most organisations build budgets based on increments on prior year budgets to cover changed costs or additional service obligations

Ian Beckett MSc
ENGAGE
Published in
4 min readJun 2, 2024

--

Person alone in the woods.
Lost in a Budgeting Forest from Midjourney © Ian Beckett

What we end up with is a forest of vertical silos.

How do you ensure that each silo is optimised for performance?

I have prepared, managed, and suffered the consequences of global budgets for forty years, and not much has changed in the preparation process — but after the budget forest was approved, everything changed.

When I took over managing the development group at Westinghouse Canada and introduced an effective product life cycle management process, reducing manufacturing errors by 90%, I asked myself how I could measure an engineer’s productivity.

At AT&T Network Systems, I deployed Peter Senge’s strategic change process, which aligned people, products, and processes with customer needs. Ireland’s business profitability increased more than that of any other global division that had also deployed the same process.

At Gateway Computers, employing customer support engineers in the test and configuration group reduced the support cost and the staff turnover rate, saving millions. I managed all product operations between marketing and manufacturing…

--

--

Ian Beckett MSc
ENGAGE
Writer for

Ian is a digital transformation expert who has saved companies $300m by integrating technologies and diverse global teams effectively— he is a CEO and poet