We see three major flaws in the budgeting or operations process at most companies. First, the process doesn’t provide for robust dialogue on the plan’s assumptions. Second, the budget is built around the results that top management wants, but it doesn’t discuss or specify the action programs that will make those outcomes a reality. Third, the process doesn’t provide coaching opportunities for people to learn the totality of the business, or develop the social architecture of working together in common cause.
