Budgets? We Don’t Need No Stinkin Budgets: Ten Things We Think We Think We Know about Budgets and Performance
Yearbook of Swiss Administrative Sciences 2012: Pages 53–66
18 Pages Posted: 24 Aug 2010 Last revised: 29 Dec 2012
Date Written: August 24, 2010
Learning is the only sure way to achieve ongoing performance improvement. Budgeting and learning are fundamentally orthogonal processes. Budgeting stabilizes, which is a good thing in itself, and promotes economy, but it discourages understanding of variation. Learning requires perturbation and measurement. Given the processes through which service accomplishment and operational excellence are realized, it is unlikely that budgeting, as generally practiced in government, can promote continuous improvement in enterprise performance.
Keywords: Budgets, performance measurement, performance management, targets, annularity, transparency
JEL Classification: H60, H61, H72, E61
Suggested Citation: Suggested Citation