This insidious budgetary creep-factor is routinely accepted in many companies, but it can be effectively neutralized through a simple business technique called zero-based budgeting.

Here's how it works. The CEO or senior department head demands that everything...that's right everything (including his own expense) in budget be open for healthy debate and defended logically if it is to get back into newly created budget. These managers and senior leaders should ask their people to start with a clean sheet of paper. Then, and only then begin to put together expenses (people, projects, supplies, etc.) that gain organization best return. Sadly, many firms begin or start with a budgetary baseline made from last year's expense run-rate. This is a fundamental budgeting mistake and root cause of creep-factor.

New and more innovative thinking occurs when zero-based budgeting is inserted into annual budget process. Instead of automatically increasing travel expense by x%, new ideas begin to emerge. If you tie certain bonus considerations to budget process and pay on achievement of reaching this budget - you may be surprised at outcome. Now thinking becomes more non-linear (out-of-the-box) and interesting results usually happen.

Global Marketing has always found that good people like (demand) to be challenged. The courage to act and insist on this type of annual budget process will challenge your good people and ensure that your firm receives a fresh, annual start and perhaps you'll achieve more!

Frank Williams is a marketer. With many post graduate courses in management, leadership, marketing and technology to his credit, Williams is a widely respected speaker, author and technologist. He has significant knowledge in marketing strategies and is the founder and CEO of Global Marketing, Inc. - a leader in business, marketing and sales consulting