CHANGES IN BUDGETING

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Abstract

One of the most important issues for companies is how to implement their strategies. Companies implement strategies in a number of ways. Budgeting is described in academia as well as in practice as the corner stone of the management control process through which strategies are implemented. Almost all companies have a budgeting process central to their strategic plans. Yet the usefulness of budgets has generated much criticism and debate in recent years. Many business owners and managers are dissatisfied with budgets. A novel approach is proposed in the literature to displace classical budgeting. This novel approach is termed “Beyond Budgeting.” The first part of the paper reviews the challenges that traditional planning and budgeting presents to companies. The second part discusses the novel approach to budgeting. The third part provides examples of companies budgeting practices. The fourth part presents the conditions for a successful implementation of the novel approach.

Keywords: Budgets, Beyond Budgeting, Activity-Based Budgeting

How to cite this paper: Yakhou, M., Sulzen, K. (2010). Changes in budgeting. Corporate Ownership & Control, 7(3-4), 465-469. https://doi.org/10.22495/cocv7i3c4p6