It’s budgeting time again, and several managers are up to their old tricks. The head of marketing presents a less-than-ambitious plan so he can exceed his targets and earn his bonus. A division manager is veiling her unit’s flaws to win funding for her plan. The product development director insists that failing to invest in his idea will doom the company to the sidelines.<\/p>\n
Though such budgeting shenanigans have long been practiced, today they’re increasingly worrisome, says Richard Steele, a New York-based partner at management consultancy Marakon Associates. During boom times, business leaders didn’t care as much about budget trickery because resources were plentiful, says Steele, who is also coauthor with Craig Albright of “Games Managers Play at Budget Time” (Sloan Management Review, Spring 2004). “But in tough times, the behavior is getting more attention,” says Steele, and executives are less willing to tolerate it.<\/p>\n<\/div>\n<\/div>\n
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