Budgets Should Facilitate Communication, Collaboration, Cooperation, and Coordination
The metaphor of an algorithm explains the dynamics of budgeting. Traditional budgeting is like those early cobol and basic programming. As organizations and societies have evolved, having had to become more responsive to environmental cues and stakeholders, the ability to make adjustments to budgets has also become critical. Hence the emergence of non-traditional budgeting methodologies.
Here is where I scream for the need to develop statistics as a language base, not a just a methodology. Budgets should facilitate communication, collaboration, cooperation, coordination that allow the numbers to provide sensibility about correlation. The key correlation that I propose is between the values that an organization espouses (Argyris and Schon) and its allocations of resources whether time, money... Otherwise the budget becomes a slave master to task compliance. Robert Quinn talks about the slow death of the task compliance mentality.
This brings us to a correlation about the urgency of leading/managing our social connections. Ignore your values and social environment at your own peril. Within the value system, the budget must correlate to the reward system too. These are issues that the traditional budgeting systems ignored. Emerging systems I suggest have not done much better.
Until we return to the metaphor of the algorithm and understand the dynamic and organic nature of systems
. If there is one suggestion I can make to everyone - develop your budgets based on your values. Congruency is not over-rated. That requires organizations that emphasize intelligence based on correlations and not just rote knowledge. Consider.