Skip to main content
Home
The Online Resource for Modern FP&A Professionals
Please register to receive the latest FP&A news, updates and tips Login

Main menu

  • Home
  • FP&A Insights
    • AI / ML FP&A Committee
    • FP&A Trends Digest
    • FP&A Talks Series
    • FP&A Trends E-Books
    • Our Authors
  • FP&A Board
    • Amsterdam
    • Boston
    • Brisbane
    • Brussels
    • Chicago
    • Copenhagen
    • Dubai
    • Frankfurt
    • Geneva
    • Hong Kong
    • Houston
    • Kuala Lumpur
    • London Board
    • London Circle
    • Melbourne
    • New York
    • Paris
    • Perth
    • San Francisco
    • Seattle
    • Shanghai
    • Singapore
    • Stockholm
    • Sydney
    • Tokyo
    • Toronto
    • Washington D.C.
    • Zurich
  • Webinars
    • FP&A Board Connect
  • FP&A Videos
  • About Us
    • Privacy Policy
    • Company Policy
    • Editorial Guidelines
    • Our Sponsors & Partners
  • Contact Us
This block is broken or missing. You may be missing content or you might need to enable the original module.
FP&A Empowerment Survey 2021

FP&A Empowerment Survey 2021

Click here to view details and register

 

The Concept of ‘Beyond Budgeting’
February 13, 2017

By Steve Morlidge, Business Forecasting thought leader, author of "Future Ready: How to Master Business Forecasting" and  "The Little Book of Beyond Budgeting" 

FP&A Tags
Beyond Budgeting
Financial Planning and Analysis

The concept of ‘Beyond Budgeting’ has been around for nearly twenty years now. Although it has helped transform many businesses and has become part of mainstream management thinking in some parts of the world, I talk to many business people who have still not heard of Beyond Budgeting. And many of those that are aware of it find the concepts difficult to grasp.

I believe that these ideas are too important to be overlooked or ignored – so I wrote a short book to fill these gaps in awareness and understanding.

The name of the organisation itself gives some clue as to why these gaps exist. ‘Beyond Budgeting’ (BB) describes what it wants to get rid of but not what should take its place. And the alternative that it advocates is not a simple blueprint that can be copied and rolled out across an organisation. Rather BB is a set of principles that have to be interpreted in the context of the unique challenges and opportunities faced by any particular organisation

For finance professionals, Beyond Budgeting changes how they do things not what they do.

So, instead of setting fixed targets for the end of the financial year, they would set relative targets that do not expire at period ends. And forecasting across a rolling horizon would replace detailed annual plans.
Resource allocation is a continuous process, made in response to emerging threats and opportunities, rather than an annual set piece event. And performance is measured by tracking trends rather than analyzing variances to budget.

Finally, the elimination of fixed annual budgets also has implications for other, related, business processes, such as how incentives are set and business activities co-ordinated.

If BB sounds like a small idea, of interest only to the Finance community, think again. But in reality, it is a large and subtle set of concepts that have important implications for the way that work is done and how organisations are structured and governed. To use an analogy from computing, BB looks like an organisational ‘app’ but it is more like an operating system - largely hidden from view but critically important to the functioning of the entire system and how it performs for its users: its employees, customers, suppliers and shareholders.

Beyond Budgeting creates an opportunity for finance professionals to contribute to business decisions making in a positive way rather than being the guardian of a process that everybody hates and adds so little to the business. I see BB as being liberating for the business and for the people working in it - finance people included.
 

 

The full text is available for registered users. Please register to view the rest of the article.
  • Log In
  • or
  • Register
+

Subscribe to
FP&A Trends Digest

We will regularly update you on the latest trends and developments in FP&A. Take the opportunity to have articles written by finance thought leaders delivered directly to your inbox; watch compelling webinars; connect with like-minded professionals; and become a part of our global community.

Create new account

The FP&A Trends Webinar: Magnifying Revenue Planning for Better FP&A Insights

The FP&A Trends Webinar: Magnifying Revenue Planning for Better FP&A Insights

Click here to view details and register

Pagination

  • ‹‹ Previous
  • April 2021
  • Next ››
Su Mo Tu We Th Fr Sa
28
29
30
31
1
2
3
 
 
 
 
4
5
6
7
8
9
10
The Digital Pan-Asian FP&A Board: The Art and Science of xP&A Business Partnering
 
11
12
13
14
15
16
17
The Digital North American FP&A Board: From Traditional to Better and Beyond Budgeting
 
18
19
20
21
22
23
24
The FP&A Trends Webinar: Embracing FP&A Transformation. Key Steps to Consider
 
The Digital London FP&A Circle: Empowering FP&A to Close the "Strategy - Execution" Gap
 
25
26
27
28
29
30
1
The FP&A Trends Webinar: The Combined Power of Human and Artificial Intelligence in FP&A: Roche Case Study
 
The FP&A Trends Webinar. Dynamic and Immediate Revenue Planning in Uncertain Environment: Insights from Microsoft and Emirates Airline
 
 
All events for the year

Future Meetings

FP&A Transformation
The FP&A Trends Webinar: Embracing FP&A Transformation. Key Steps to Consider
April 20, 2021
Digital London FP&A Circle
The Digital London FP&A Circle: Empowering FP&A to Close the "Strategy - Execution" Gap
April 22, 2021
The Combined Power of Human Intelligence and AI in FP&A
The FP&A Trends Webinar: The Combined Power of Human and Artificial Intelligence in FP&A: Roche Case Study
April 27, 2021
Revenue Planning
The FP&A Trends Webinar. Dynamic and Immediate Revenue Planning in Uncertain Environment: Insights from Microsoft and Emirates Airline
April 28, 2021
The Digital Swiss FP&A Board
The Digital Swiss FP&A Board: Building Winning FP&A Teams
May 6, 2021
The Digital Benelux FP&A Board
The Digital Benelux FP&A Board: The Art and Science of FP&A Storytelling
May 11, 2021
FP&A Predictive Analytics
The FP&A Trends Webinar: How to Manage Uncertainty with FP&A Predictive Analytics
May 12, 2021
xP&A Business Partnering
The Digital Pan-Australian FP&A Board: The Art and Science of xP&A Business Partnering
May 13, 2021
FP&A Scenario Planning
The Digital Middle Eastern FP&A Board: The Power of FP&A Scenario Planning
May 24, 2021
The Digital Nordic FP&A Board
The Digital Nordic FP&A Board: The Art and Science of Digitised FP&A Business Partnering
May 25, 2021
Advanced AnalyticsArtificial Intelligence (AI)Behavioural FinanceBetter BudgetingBeyond BudgetingBig DataBrexitCash PlanningCollaborative PlanningCorporate Performance Management (CPM)Cost PlanningCOVID-19DashboardsData ManagementData QualityData VisualisationDriver Based PlanningExtended Planning & Analysis (xP&A)Financial Planning and AnalysisForecasting QualityFP&A AnalyticsFP&A Business EnvironmentFP&A Business PartneringFP&A Case StudiesFP&A DigitalisationFP&A Maturity ModelsFP&A PeopleFP&A SkillsFP&A StorytellingFP&A Talks SeriesFP&A TechnologyFP&A TransformationFP&A Trends E-BooksFP&A Trends InitiativesIntegrated FP&AKey Performance Indictators (KPI)Machine Learning (ML)Management AccountingModelling and ForecastingPlanning and BudgetingPredictive AnalyticsProfitability AnalysisRisk ManagementRobotic Process Automation (RPA)Rolling ForecastScenario PlanningStrategic FinanceStrategic PlanningTeam BuildingWhat is FP&AZero-Based Budgeting (ZBB)

Please register to receive the latest FP&A news, updates and tips.

info@fpa-trends.com​

              

Foot menu

  • FP&A Insights
  • FP&A Board
  • Webinars
  • FP&A Videos

Footer countries

  • Amsterdam
  • Boston
  • Brisbane
  • Brussels
  • Chicago
  • Copenhagen
  • Dubai
  • Frankfurt
  • Geneva
  • Hong Kong
  • Houston
  • Kuala Lumpur
  • London Board
  • London(Circle)
  • Melbourne
  • New-York
  • Paris
  • Perth
  • San Francisco
  • Seattle
  • Shanghai
  • Singapore
  • Stockholm
  • Sydney
  • Tokyo
  • Toronto
  • Washington D.C.
  • Zurich

Copyright © 2021 fpa-trends.com. All rights reserved.

0