For Annual Planning, Investing Beats Budgeting
Hi everyone. I wrote this piece on how, at ConsenSys, we've used principles from venture investing to come up with a better budget process. One that gives teams more flexibility and autonomy, and is more transparent for the org. It was designed to help us do budgeting in a way that supports our broader desires to decentralized the company.
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Social capital and social networks are becoming increasingly important in today’s economy at large, and for individuals within organisations. For my MSc dissertation in Organisational Psychology, I researched how newcomers transition into a self-managing organisation (Lee & Edmondson, 2017), an organisation where authority is decentralised and classic manager-subordinate relationships are absent.
It’s all about your people. Now more than ever. But in knee-jerk reactions to the coronavirus many companies are laying off large numbers. I want to shout out to the shareholder-value managers driven by their spreadsheets: “This is not only inhumane. It is bad for your business!”. Why? It will harm your company. Companies that treat their people best in bad times emerged as winners in the past.
"Nothing reveals character like a crisis." We wrote this recently and, as predicted, during the Corona crisis, companies revealed their true colors. Recently, we highlighted the bad. So let's turn to the good, and highlight organizations that not only talk about putting people first, but also walk their talk. Let's applaud those that put their money where their mouth is in difficult times.