Do you agree??

A budget is the foundation of a business and the roadmap to achieve goals and milestones. This can provide data in real time to ensure you are on track according to plan. Also, it can be used as a historical record to review growth from quarter over quarter and year over year. Responsibility accounting is used to empower managers of division leads within a department to make sound decisions. Decision making is delegated to the lead in each division to meet operational goals, while top executive leadership provides oversight and ensures all divisions are meeting miles stones to achieve long term goals. Management by objective is when a manager of a division understand guidance and agrees on a set goals to execute in a quarter and/or year. The standard and performance is which this is done is evaluated by the executive leadership. Management by exception is when a manager is assigned or tasked to a division to find a solution to a discrepancy within the division. For example, if a division has been going over budget on two consecutive quarters, and the manager is sent to discover if materials need to be cut back, if there is wasted labor hours, of if there can be an improvement in the continuous process.

A company can use a Balanced Scorecard to help improve performance. A Balanced Scorecard is broken down into four perspectives. Learning and Growth, Internal Process, Customer, and Financial. Im their simplest forms, each are designed to bring in the most revenue while keeping customers and employees happy for peak production. In my opinion, Balanced Scorecard is very structured and almost takes division management decision making out of the process. It is designed to put someone competent in the division and ask them to direct the division and follow the Balanced Scorecard. Whereas traditional evaluation, the division manager is tasked with milestones and goals and the manager executes. The manager is empowered to make decisions, and is evaluated on their performance.

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