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Budget reductions and accountability final

by Portfolio Management Consultant on Mar 18, 2012

  • 345 views

Do budget cuts drive accountability and force decision makers to make better and more efficient budgetary decisions? This question is not only an issue for state and local governments, but of ...

Do budget cuts drive accountability and force decision makers to make better and more efficient budgetary decisions? This question is not only an issue for state and local governments, but of corporations as well. In many companies, there is downward pressure to reduce information technology (IT) spending, even slashing budgets in order to “get things under control.” There were big IT layoffs at Boeing in 2010, yet IT organizations are still expected to perform at pre-2010 levels. Based upon current literature and examples from the Boeing company and the City of Bellevue, the outstanding characteristic is that the more proactive a management team is to develop good governance processes, the quicker it can respond with better decisions when budget cuts do occur. This paper will address the needs and benefits of good governance, as well as the leadership required to be proactive in order to realize the benefits of a solid governance framework.

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