Every organization, whether a business enterprise or not, has a theory of the business. Indeed, a valid theory that is clear, consistent, and focused is extraordinarily powerful.
Every agency, every policy, every program, every activity, should be confronted with these questions: “What is your mission?” “Is it still the right mission?” “Is it still worth doing?” “If we were not already doing this, would we go into it now?”
All budgets, no matter how constructed, still serve these original purposes. They enable management—whether of a business, of a hospital, or of a government agency—to pull together its commitments, its plans and projects, and all its costs in one
Budgets, in other words, should always be used as a tool to think through the relationship between desired results and available means.