Investment-Based Budgeting: Why CFOs Should Mandate a New Corporate Budgeting Process

Date Added: Sep 2008
Format: PDF

While most budget processes succeed at setting spending limits, they do little to assure the proper allocation of resources. This white paper examines the shortcomings of traditional budget approaches, and suggests a powerful new format for budget submissions and negotiations - termed "Investment-based Budgeting" - in which departments plan the costs of their products and services. By implementing Investment-based Budgeting, CFOs can have a far-reaching impact on leadership accountability, enterprise strategy, and shareholder value.