Some managers are known for “never having missed a budget target.” Do you believe that is possible? Does such a record suggest that the managers are extremely effective managers; very lucky managers, or devious, manipulative managers? Are such managers to be congratulated (and, possibly or likely, promoted in their organizations) for their budget-achievement record?

Almost every business and managers use pre-set performance targets as it stimulates employees, helps evaluate their performance, increases their commitment and reduces the cost of intervention and game-playing. Those targets are defined during the budgeting process which is the third planning cycle and are usually financial. They are typically expressed on an annual basis and are related to the measurement of performance and possible rewards and incentives. Financial targets are fixed in most firms which mean that managers are accountable for achieving their targets regardless to the changing environment during the year.
Targets need to be right and set the proper way. They need to be a correct amount of challenge. Indeed, targets need to be achievable otherwise the manager will feel demotivated which is counterproductive. Consequently, achieving a budget target doesn’t only depend on the manager’s performance but also on how the target is set by himself or his superiors. Studies shown that at corporate level, budget targets are set to be achievable 80 to 90 % of the time by an effective management team (Marchant & Van der Stede, 2003). It is therefore totally possible that some managers never miss a budget target.
A manager can achieve his budget target because he worked efficiently but also because accounting practices make it possible to manipulate profits and smooth earnings (I don’t believe that we can say it is due to luck as it is unlikely that luck repeats itself year after year).