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Strategically Speaking August 2015: Is the Budgeting Process Still Fit for Purpose?

In this series, Palladium asks expert strategy practitioners to share their experiences and opinions. We asked:

Jack Welch famously said that the budget was “an exercise in minimization” and that “it should never have been invented.” Yet the budgeting process remains the central framework by which organisations set targets, allocate resources and pay bonuses.

Given today’s market dynamics and the increasing speed of change, is the budgeting process still fit for purpose? Are there alternative planning approaches that can replace or supplement the usual budgeting process to enable planning agility? What implications do alternative approaches have for strategy execution?