So most companies have a big corporate office and a bunch of regional offices that they allocate money to, I get that. Let’s say a given office gets a $500,000/yr operating budget (just throwing out a random number). How do they spend exactly $500,000? Because they obviously don’t want to go over budget but they don’t want to have a surplus and lose $ next year. So is there wiggle room? Would they spend $499,995 or something?
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When the end of the year approaches and you have too much left, spend it on complete bs to ensure you get the same amount next year.
I know at least in the Air Force, if a unit has extra money at the end of the year, they would make sure to spend it by the end of the fiscal year.
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Most smart organizations are beyond budgeting.
The budget process is expensive, time consuming, and the budget is often irrelevant by the time it is in play. It can cause sub-optimization.
Why continue funding failure, just because it is in the budget? Why ignore new opportunities just because there is no budget?
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