Budgeting For Innovation

Most organisations are currently reviewing annual budgets for the next financial year. Having been first party to a number of budget reviews over my own career, what is clear – the concept of budgeting has certainly remained true to its very nature of keeping costs under control. How many of you out there have had seen this as a positive experience?

From my own perspective one of the missing parts of the budgeting process is planning for future innovation. After all, most businesses at some point in time would have taken huge risks to drive forward their own success. This in itself appears to be a contradiction when budgeting for innovation. Far too often, we are asking managers to tow the corporate line, and thereby stifling risk taking and innovation. How many of you leaders out there recognise this pattern of continued and systemic road blocks to success.

The increasing intensity of businesses leveraging the internet and social media to build global businesses has been short of incredible. What can we learn from the dynamic and innovative approach new on line businesses use in todays world? Using a creative and innovative growth strategy has many merits, notwithstanding the need to create an interesting working environment for staff and leaders like.

Next time you are faced with fiscal budgets, remember to add some investment for future innovation and growth. Otherwise we could all end up in the same place as Kodak.

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