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Phase II: The budget is discontinued when firm is ready

Phase II introduces the CEO and CFO to OIS’s exhilarating qualitative advantages for the firm. Specifically, moving from a one with a budget focused on cost-min to an income statement focused on best possible profitmax

The advantages include:

  1. the departmental managers being relieved of the traditional budget’s dis-incentives
  2. employees proud of the firm’s executive team which is focused on achieving best possible profit 
  3. It’s recommended HR put together a “road show” for the departments explaining key OIS features like best possible profit
  4. departments’ managers motivated to directly impact firm’s profit by using their knowledge of their departments’ activities to  improve their departments’ productivity.
    • It’s recommended HR put together an activity-based class on how  the departments’ would do that
  5. As an incentive, management might consider rewarding any productivity improvements with a bonus, maybe even including the employees. This would promote a culture of continuous improvement in support of profit.
  6. Share the new culture with Wall Street analysts covering firm
  7. Finally, it’s likely SIC code institutes like Consumer Goods Technology would invite clients with OIS installed to share their successes at its annual Consumer Goods sales + marketing Technical Summit.

 

 

 

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