The negative influence of unrealistic budgeting
One common source of dysfunctional cultures:
Dumb budgets.
When unrealistic numbers are agreed to at the top...
Everyone suffers.
The Executive Office puts pressure on Sales management.
Sales management puts pressure on the sales team.
Marketing gets blamed for shitty leads.
Marketing management puts pressure on the marketing team.
Everyone feels like they’re losing.
The blame game and finger pointing starts.
People are worried about their jobs.
Thinking gets shorter-term.
And you have all the ingredients for a dysfunctional culture.
How do you prevent this?
1. Realistic budgets that can actually be explained...
And attained.
2. Speaking truth to power...
And calling out unrealistic numbers before they're locked in.
3. Cross-functional alignment...
And collaboration in setting goals and solving problems.
Aggressive goals are one thing.
Unrealistic budgeting is another.