Can we Use Beyond Budgeting in Entrepreneurial Companies?

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(Beyond) Budgeting > Best Practices

Aleksandra, Student (University), Russian Federation
Is it possible to embed the BB model in a young company? One of principles of the BB model is allocation of available resourses by needs, so now there are cost plans. And how in this case we can set prices? (...) Read more? Sign up for free

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  adele best, Student (University), United Kingdom

Can One Use Beyond Budgeting in Small Companies?

Do you think beyond budgeting can help small businesses, and what are the best ways to implement it?


Beyond Budgeting not for Small Companies

From this picture and in particular the principles 4, 5, 6, 10 and 11, it would seem that BB is a financial practice aimed at making larger, established firms behave more entrepreneurial again:

  Hong Sun, Management Consultant, Canada

Small Companies are Born to Be in Beyond Budgeting Mode

Of course Beyond Budgeting can be used in small companies. Chances are that small companies are born to be both agile and BB, because small organizations are owned and operated by entrepreneurs whose mindset is very close to or exactly what is required by BB and agile movement; and there's no rigid command-and-control bureaucratic hierarchy or problematic yearly budgeting process that provides nothing but waste and an illusion of control.
The key to success in Beyond Budgeting is to disintegrate a large organization into small ones and empower each to gain the flexibility and agility that most small companies are born to have.
So if you are a small company, you are like a slim person who is naturally more agile and flexible than the fat ones--large organizations, and you are probably already operating in an agile way or BB mode.

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