Tuesday, September 21, 2010

Beyond Budgeting

I read about papers on Beyond Budgeting few years ago and really agree that the fixed contract budget does not drive the correct behavior for business growth. The traditional budget really set a cap on income growth while set a floor on expense growth.

However, Beyond Budgeting has not been widely adopted by organizations as Balanced Scorecard or Activity Based Costing.

I highly recommend this academic paper that analyzes this phenomenon.

The Evolution of a Management Accounting Idea: The Case of Beyond Budgeting