the race to spend money

The race to spend money

The end of the year is quickly approaching. And that signals department heads to hurry up and spend money. Use it or lose it. The phenomenon is rooted in ineffective budgeting processes. The budget for next year is based on actual spending this year plus an inflationary factor. And that drives department heads to race to spend money, many times ineffectively, to make sure they have what they believe they need for next year.

Rather than a race to spend money indiscriminately, why not make your budget reflective of your priorities? By building your priorities into your budget, you will be able to track progress. Did you do what you said you would do? Did it generate the results you expected?

You’ll find being deliberate and ending the race to spend money will drive you to make progress against your goals.

Check out my new book, Leading the High-Performing Company. You’ll find more tips about how to lead your organization to new heights.

Posted in Financial Management, Leadership, Strategy.

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