Tips for driving optimal budgeting.

• Position: Business Briefs - Brief Article

Many companies will invest significant energy conducting strategy reviews in preparation for their 2003 budgets, but most senior executives don't believe this process delivers sufficient return for the time, says The Peak Performance Consulting Group of Grand Rapids, Mich.

The firm has come up with five steps it says the top companies it studies use to drive results.

* Avoid incrementalism, the "last year plus 10%" syndrome. Start with the goal you aspire to achieve, and work backwards to determine the strategies required to accomplish it.

* Once you have made the commitment to change, be realistic. You can't make the changes necessary, or assign the resources required, without an objective assessment of the market opportunity, current capabilities and resources required.

* Remember that focus is the essence of strategy. It's not just what you decide to do, but also what you decide not to do. Many managers have a difficult time saying "no" to good ideas...