The budget for the future remains stable throughout good times and bad.
In most enterprises—and again not just in business—there is only one budget, and it is adjusted to the business cycle. In good times expenditures are increased across the board. In bad times expenditures are cut across the board. This, however, practically guarantees missing out on the future. The change leader’s first budget is an operating budget that shows operating and capital outlays to maintain the present business. That budget should always be approached with the question: “What is the minimum we need to spend to keep operations going?” And in poor times it should, indeed, be adjusted downward.
And then the change leader has a second, ...
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