The Budgeting Process is the driver of outmoded Command and Control Management

Thanks to Gordon Hall for the following item. The schooling system might well learn a few lessons here.
In their book “Beyond Budgeting,” Hope and Fraser highlight that our present budgeting process – with its forecasts, leading to monthly budgets, reports against these budgets and finally performance review against these budgets –  is the driver behind our outmode command and control style of management. (Management by Results)
 
The Alternative is  described in Johnson and Broms’s book “Profit beyond Measure.” Their phrase is “Management by Means.”  In simple terms it is necessary to manage the whole process not just the results or outcomes.
 
The uncomfortable implication of the above two books is that we will never move forward until we are prepared to radically redesign out financial control processes.
 
Gordon Hall
The Deming Learning Network
& A Learning Society in Scotland
Tel: 00 44 1358 721258
email: g.hall@dln.org.uk
web sites: www.dln.org.uk & www.learningsociety.org.uk