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Ken Garrett.
Ken Garrett.-
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winnielai119
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Dear Sir,
Just refer to the below link:
It mentioned the benefits of beyond budgeting, which it creates transparent and open information systems.
But I don’t understand this statement:
“The IT system is crucial in flexing the key performance indicators as part of the rolling forecast process.”So beyond budgeting is similar with rolling budgeting procedure?
Please help to advise.
Thanks.
W
Ken Garrett
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Rolling budgets always look, say, 12 months ahead however they are essentially conventional budgeting tools and the forecasts in the budgets are set in advance.
Beyond budgeting tries to get away fro setting strict budgets in advance (though forecasts are needed for planning purposes). Instead, beyond budgeting tries to give managers much more freedom to make decisions as time passes that might radically change the original plans. If new decisions are made, new plans and outcomes have to be established and this is where good IT is essential to facilitate the evolving plans.
winnielai119
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