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Hello,
Please, explain if there is a difference between rolling and beyond budgeting?
For me, beyond budgeting = rolling budgeting + managers’ responsibility in setting budgets. Is this understanding correct? Or else to add?
That could work, but perhaps too much emphasis on budgets. Beyond budgets tries to get away from budgets of any sort. The important thing is that managers are not constrained by detailed budgets. They are given general tasks (eg get profit and NP% above certain amounts, the might be beating another division) and then letting managers decide how best to achieve that.
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Also beyond budgeting focuses more on future, changes in business environment and more inclined towards benchmarking; traditional budgeting is mainly based on past years results, and limits itself within the budget targets.
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