3 ms·
It sounds like there is a missing incentive to go under budget. There's something wrong with the system if people feel like they just have to burn money.
by skohan 7y ago
It sounds like there is a missing incentive to go under budget. There's something wrong with the system if people feel like they just have to burn money.
- mschuster91 7y ago> It sounds like there is a missing incentive to go under budget. Other way around. Right now there exists a negative incentive to go under budget, being that if you need extra budget next year you suddenly don't have a buffer. The correct way to fix things is to simultaneously prohibiting end-of-FY budget-keeping purchases (e.g. by mandatory reviewing of purchases) while at the same time allocating a company/organization wide buffer for stuff that needs immediate / projected stuff that was not in the planned budget.
- cobookman 7y agoI like how google did employee travel. They calculated a cap = 2/3 * historical employee data + 1/3 * current cost of business flight. Obviously for common routes such as Sf to la, nyc to sf...etc they hard coded values. for every $1 under the cap you received 50cent to use on a future travel plan over the calculated cap. You could fly economy on an international flight saving money, then bank 50% of savings to buy a first class ticket some other time. This created a negative feedback loop keeping travel costs in check.