We’ll start with some silly budgeting games:
1. “Use it or lose it budgeting.” This is when you are getting close to the end of the year and your budget is running under your forecast. In previous years, when you underspent, your next year’s budget was set based on that year’s actual. So, in order not to have your budget cut again, you go on a shopping spree — buying stuff you really don’t need or stocking up just in case you might need it.
2. “Lowballing your forecast.” This one is kind of the opposite of No. 1. In this game, the idea if to “sandbag,” or undercommit to what you think you can actually do. That way, then the powers above ask you to increase your goal, you know you can do it. Then, you look even better for exceeding your target.
3. “The shell game.” This is when orders are given to cut expenses in one category, i.e., travel, so you increase spending in another catalog, i.e., conferences, and bury the costs. Or, management says to reduce money spent on postage, so you spend more money on bike couriers. There is a net gain of zero, perhaps even an increase in spending.[…]
Read full article via Great Leadership: 10 Stupid Games that Managers Play.
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Jim is president of InnoThink Group and Leadership Matters. He is a leader in workplace learning, productivity, performance, and leadership training solutions. For over 25 years, we have helped companies improve their performance, productivity, and bottom-line results.