Agile and Yearly Budgets
ByI just got done reading material on annual budgeting process in large companies. When we think about this yearly ritual you start realizing how counterproductive it can be.
We always joked about Internet time in the last years of the 20th century. Companies were accelerating the deployment of products and ideas in months instead of years. One could not imagine trying to forecast a budget for a year.
Now we are in uncertain times. Yearly budgeting just restrains us because we allocate funds for projects we assume are going to be valid 6 or 9 months from now. Can you really predict what is going to happen 6 months from now for any company?
Companies need to make all processes agile to truly be Agile. That includes the area of budgeting.