Bill Canady explains how incremental budgeting locks in 96% of costs without review. Once approved, expenses become fixed baseline that never gets questioned again, leaving leaders to debate only the 3-4% delta each year.
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This is the— Okay, this is the 1,000 Day CEO. I'm Bill Canady. Let's get into it. Let's be precise about what incremental budgeting actually does to a business because the damage is specific. Every dollar in your cost structure was approved once by somebody for a reason, but it's only approved once. And after that first year, it stops being a decision and becomes a baseline. Nobody has ever had to justify it again. The only thing ever has to justify is the change, the delta. What we're gonna grow this thing by. So your budget conversation every October is a conversation about 3 or 4% of your entire cost structure, and 96% of it goes through unexamined forever. Woo. Okay.