With the recent news of the Suez Canal being blocked by a massive container ship, I was reminded of the intriguing story of how the Panama Canal almost wasn’t built in Panama. For those who may not know, the Panama Canal is a 51-mile-long passage built in 1914 which connects the Atlantic and Pacific Oceans….
You likely know about reverse psychology, but have you ever heard of inversion thinking? Reverse psychology is when you get someone to do something you want them to do by suggesting they do the opposite of it. One form of reverse psychology is to forbid someone to do something that you actually want them to…
In a world filled with electronic devices, I still get great satisfaction by crossing out items on a handwritten to-do list. In fact, I find that I am more likely to complete a task if I write it down on a piece of paper. Much more likely than if it’s on an electronic list or…
For several years, I’ve argued that performance management is more than just budgeting. I’ve also pointed out that the term planning was often misused by software vendors whose products were mostly limited to financial planning (aka budgeting), rather than end-to-end resource allocation and management. And finally, I’ve advocated outcome-based budgeting, rather than activity-based budgeting, so…
Over at Intelligent Enterprise, an article entitled “How to Get to Better Planning and Budgeting” provides five questions every finance organization should ask: Is the planning and budgeting process as strategic as it could be? Are the budgets as accurate as they should be? Does your planning really help increase your company’s agility? Could your…
Openly, I get annoyed when people use the term planning to describe budgeting. While the terms planning and budgeting are often used interchangeably, they’re not the same thing. Budgeting is how you allocate resources (typically financial) to reach specific objectives. Budgeting helps you create an estimate of income and expenses for a specific time period. Budgeting manages money…