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Forget Your Budget Performance

Virtually all organizations use how they are doing versus their budget as a key measure of performance. While you must manage your dollars, this measure is necessary but borders on useless in terms or focus. You might enjoy this from the book:

THEN companies tend to use few measures, and the ones they do use often fail to keep the right scores. Take “performance against budget”, for instance. This “most used and least useful” measure tells you nothing except whether or not you spent the money you thought you would spend.  But what does it tell you about whether or not you are making satisfactory progress toward your business goals? NOW company leaders want to know about that progress. They use scorekeeping to create the right context for action. The right context gives employees the maximum freedom to act in service of the customer. The right measures create the right context by clearly communicating what you expect your people to accomplish. Every good management system relies on them. They remind everyone,   “I keep score to maintain focus.”

  • About The Author

    John Bernard

    John Bernard ‘s work in redefining the fundamental drivers of business performance improvement has led to national recognition as a thought leader in employee engagement. As an equally experienced executive and consultant, his effective articulation of new ways of thinking about management and management systems has led to his forthcoming book, Engage to Win, The Surprising Secret to Extraordinary Employee Engagement. John is managing partner of Portland, Oregon based Mass Ingenuity at Check out John's book at Full

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