 is that be in a bit in excess and it could be possibly because they're trying to make sure that they expend or spend all the money that has been allocated to them by the budget for that period so that in the next period, they can argue that they need the same amount of money. In other words, there's not really an incentive oftentimes for us to spend less money that has been allocated budgeted to us because we know that the following budget, the next budget that's going to be made is going to be based in part on the prior period and if we didn't spend all the money that was allocated to us in the prior period in our department, it's likely that we will see less in the budget. Again, we want to basically have communication within the budgeting process and make sure that we reward people for achieving their goals and making their goals and actually spending less in some way. So although the budgeting process has this problem kind of inherent in it because we do have to allocate some expenses to departments in some way, we want to basically be aware of that and incentivize people, recognize people, notice people that are spending less than the amount allocated and find some way to reward that as well. Another problem with the budget is it's difficult to find the best range for the budget. In other words, we want to have a range that's going to be high enough to challenge people because that's where people maximize their performance. We want people to be challenged. That's when actually they feel better about themselves because they get to do something in a challenging fashion and try to meet an objective that is a challenge to them. And of course, that's where the company gets the most benefit as well. But if you go too far on the goals and objectives and make them too difficult, then that will discourage people and it will either stress them out or it will make them say, hey, you know what, this is unachievable. The goals and objectives that are always being put out there are things and goals and objectives that everybody knows are not achievable and that could lead to people just giving up and not trying at that point in time. So on one side of the spectrum, you have the goals and objectives being too low. If they're too low, you end up with people just basically relaxing and saying, I can clear this subjective no problem and not pushing themselves. And when they're not pushing themselves, you're actually hurting the employees a lot of times because they would actually benefit, whether they would admit to it or not, from a higher objective because they would be able to achieve something that is difficult for them. And that usually gives benefit to the employees. And of course, obviously it's best for the company as well. And again, if the objectives are too high, then you're going to discourage employees and they're either going to get frustrated, they might leave or they're just going to say, they're just going to stick around and just stop trying. You'll end up with the same kind of scenario here with people not doing anything because either they get stressed out and they leave and replaced or they just say, hey, the objectives that are given to us are always way too high. There's no way anybody can meet them. And therefore we might as well just do whatever we can do here. We don't have, in either way, in either side of the spectrum, we don't have the incentive for people to really strive for the goal. So what you want is to hit that sweet spot for people. And again, every person is different, so it's difficult to do. But you want to hit that spot where people are really trying for the goal, it's difficult for them. And yet it's not too difficult, it's not unachievable. And that's always a balancing act within the budgeting process. To recap, then, some of the problems with the budgeting process that we want to be aware of as we go through it is there could be an incentive to understate sales budget and overstate expense budget to look good and hit the target. So there's an incentive for department managers to possibly lower the target of their budget to make something that would be easier to hit. So we want to be aware of that and make a culture to deal with that and hopefully set up a culture so that people don't want to do that, want to make challenging goals for themselves and the company. There could be pressure, could lead to unethical behavior to achieve goals. So when we set those high goals, again, we want to make sure that there's a culture within the company that says, hey, we'd rather have you not meet the goal than sacrifice the long-term vision of the company or do anything that would be unethical. Budgets could lead to spending budget amount, even though it is not necessary, so budget is not reduced. In other words, it could lead to people saying, hey, this is how much was allocated for me to spend this period. I'm going to spend that amount no matter what, even if I don't have to. So that next period, I am allocated at least the same amount. So we want to be aware of that. That's going to be a natural incentive within the budgeting process. Again, we want to set up a culture that says, hey, it would be good. We will reward you. We will recognize you if you do good, if you surpass what is expected in terms of the spending budget. And budgets that are not realistic can reduce morale. While budgets that are too easy to meet will not inspire growth. In other words, we want to make that budget that's somewhere in the sweet spot that departments can say, hey, I can meet that. I can meet that goal, but it's difficult. It's not something that I can easily meet. It's something that's going to be challenging. It's a challenge that people will hopefully want to take on and aspire to.