It’s no secret that annual budgeting processes are time-consuming, add little value and prevent managers from responding quickly to changes in today’s business environment. Traditional budgeting’s focus on fixed targets and performance incentives often leads to dysfunctional, even unethical, management behavior. But organizations can break free from the annual budget trap once and for all.
Beyond Budgeting presents an alternative, coherent management model that enables companies to manage performance through processes specifically tailored to today’s volatile marketplace. Based on the decision-making needs of front-line managers, this model lets you take advantage of two major opportunities. Your company can create a set of adaptive management processes that replace centrally controlled, predetermined goals with self-regulating, relative competitive benchmarks and transfer the power and decision-making authority from the center of the organization to the front line