CEO Failure Mode: The Budget Tyrant

The next in a potentially endless series on the pitfalls of the CEO role

Some CEOs act like their company’s annual budget was a divine creation passed down from an infallible god. These are the Budget Tyrants, CEOs who view deviation from the financial plan not as an opportunity to rethink priorities, but as a failure of discipline.

The Budget Tyrant CEO is often a former CFO or finance executive. They believe the key to a successful business is strict adherence to the budgeting process. Deviation is the enemy. By following the budget to the letter, the CEO believes variability in the business can be reduced and outcomes controlled.

But this mindset only works if the environment never changes. Of course, the environment does change. Constantly.

When the budget becomes scripture, good opportunities pass by the organization. Under the Budget Tyrant, the rigid logic of the established plan starts to override the team’s common sense and its ability to pursue opportunities.

See also: why you need entrepreneurs in your organization.

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