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Managers in organizations have been faced with difficulties related to decision-making and enhancement of performance output in their organizations. This is attributed to the fact that managers have been using traditional budgeting, which is quite rigid for change adoption. Moreover, business environment of most organizations has been changing globally. A key factor contributing to this is global economic crisis, which introduces several dynamics in the marketing environment of business organizations.
In order for managers to overcome these challenges, managers need to adopt beyond budgeting concept, which will aid in attainment of success in their organizations. In comparison to traditional budgeting, beyond budgeting provides managers with an opportunity to incorporate change in their organization strategies. Moreover, beyond budgeting consumes less time and resources during the preparation process in comparison to traditional budgeting.
Beyond budgeting is globally accepted concept, which aims at ending today’s economic crisis. Jeremy Hope claims that he did a survey on several organizations to establish the possibility of adopting beyond budgeting concept. This was depicted in an interview conducted by Daum (2003) with Jeremy Hope as the interviewee. As Jeremy claims, organizations should be in the face of adopting change in their management styles. This change is highly enhanced by beyond budgeting concept, which creates a room for managers to have an effective and efficient leadership, as well as management of their organizations.
Beyond budgeting aids in attainment of an organization performance since it enhances an effective future forecast of what the organization should focus on in order to attain success in its business operations. As such, beyond budgeting enhances in talking care of all turbulence activities, which occur in the business environment of most organizations. This involves taking of measures and actions, which enhances in maintaining the business goals and objectives of an organization. Furthermore, beyond budgeting enables business organizations to have effective performance indicators, which aid in evaluating the success level, as well as the performance output of organizations.
Therefore, all organizations, which focused at attaining their corporate goals, improvement in their performance, and developing an effective corporate reputation should adopt beyond budgeting concept.
Bibliography
Daum, J, 2003. “The Origins of Beyond Budgeting and of the Beyond Budgeting Round
Table (BBRT)”. An Interview with Jeremy Hope. 5 (3). P. 168-171.
