Rainbarrel Products, a diversified consumer durables manufacturer, was coming off of a couple unproductive quarters due to a slowdown in consumer spending. Hiram Phillips was brought on as a CFO and chief administrative officer to reverse the fortunes of the company. Hiram stepped in and implemented a new corporate budgeting and performance management strategy that appeared successful by the numbers but had several consequences.
Hiram came into a highly unorganized situation that was full of uncertainty. "Look, none of us fights very hard at budget time, because after three or four months, nobody looks at the budget anyway" (Kerr, 4). Rainbarrel's executives had no idea of the corporate budget and spending but they still went forward in funding and developing new products. The company spent freely and without any concern which was a concern for Hiram.
Hiram was an individual that was concerned strictly with numbers and thus wanted to rectify the budget of the company.......
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Approximate Word Count: 1205
Approximate Pages: 5 (260 words per double-spaced page) |