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A further opportunity to spread the Causal Model

How many times we come across some sort of resistance to the implementation of the causal model within an organization to support the creation of a sound basis for the best possible decision making!


In my opinion one way to give evidence of the great usefulness of this model could be the Zero-Based Budgeting "need" of the businesses discouraged by the great differences between Actual and Budget.

I will be more clear.


A lot of companies are facing many changes so that many managers bring into question the need for the traditional Budget since in their opinion the Actual will be so different from the "estimated" because of a great deal of factors.


Instead of putting aside a guide for pursuing the goals of the company why not to abandon the traditional incremental-decremental way of building the budget and to start from scratch!!??


You know that over the Zero-Based- Budgeting process you have to break down the Business Units into decision packages (i.e. activities) and allocate, based on some drivers, the funds needed for achieving the business goals to them.


These steps as a result are the most appropriate moments when you can explain the advantages of the causal model and take the opportunity to apply them in order to benefit all the organizations involved.


Pushing to ZBB for the application of the causal model?

No, but just capitalizing on the real need of the business for reinventing the budget process



 
 
 

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