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U.S. Firms Find That It's Tough To Do "Budgetless' Business GE's Welch downplayed role of budgets, but most firms sticking with them.(LEADERS & SUCCESS)(MANAGING A SUCCESSFUL COMPANY)
Byline: KIRK SHINKLE
It's been called "the bane of corporate America" by General Electric's Jack Welch and "a tool of repression" by Chrysler's Bob Lutz.
Government regulation? Hard-core environmentalism?
Nope. They're talking about The Budget.
The most traditional of management tools is getting new scrutiny. But budgeting is a tried and true part of American business. Changing one of the oldest benchmarks of progress won't come easy.
Not many U.S. companies are going budgetless, but there's interest from an unlikely source: Europe.
In 1998, the U.K-based Consortium for Advanced Manufacturing International, CAM-I, saw reasons for dumping budgets in favor of new performance measures. It formed the Beyond Budgeting Round Table to develop some new strategies.
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