All 34 The Budgeting Process questions
More in The Budgeting Process
What is the budget timetable and why is it important? How does benchmarking support budgeting? How is a not-for-profit or public sector budget different? What behavioral issues arise in budgeting? How does budgeting link to strategy and long-term planning? How should organizations use technology and driver-based models in budgeting? How should budgets and reward systems interact? How does organizational structure affect the budgeting process? How do you handle conflict between departments in budgeting? What is the role of contingency and buffers in budgets?
Advertisement
Back to results for “The Budgeting Process”
Budgeting & Forecasting › The Budgeting Process

What is 'beyond budgeting' and why has it emerged?

Advanced

Answer

Beyond Budgeting is a management philosophy criticizing traditional annual budgets as rigid, time-consuming, and prone to gaming, and instead advocating adaptive processes—relative targets, rolling forecasts, decentralized decision-making, and continuous planning. It emerged from frustration that fixed annual budgets don't suit fast-changing environments.
Real-world example A company abandons its fixed annual budget for rolling forecasts and relative performance targets under Beyond Budgeting.

Common follow-ups: What does Beyond Budgeting replace fixed budgets with? | What are the criticisms of annual budgets?

Rolling Forecasts Zero-Based Budgeting The Budgeting Process
All 34 The Budgeting Process questions