Weaknesses of Traditional Budgeting

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Anneke Zwart, Student (University), Netherlands
Fraser and Hope mention the main weaknesses of annual (traditional) budgeting that gave rise to the development of thinking beyond budgeting: 1. Time Consuming - Budgeting takes a lot of time. Average time needed for budgeting lies between two and four months according to the authors. 2. Costly - Despite developments of high quality and fast computer networks, the process of budgeting still remains to be expensive. 3. Useless - After visiting several companies, it appeared that many companies perceived the results of budgeting differently. Budget gave some companies more control, while in other companies budgeting was perceived as being unimportant and not meeting any needs. 4. Bureaucratic - The continuous pressure on prices of goods and services asks for decreases in structural costs and in bureaucracy. 5. Frequency - Initially changes in the competitive environment resulted in budgeting more often in a year, but its only result is a rising workload that is especially high in re (...) Read more? Sign up for free

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  Nita, CEO, United States

On Weaknesses of Traditional Budgeting 6b: Changing Economic Enviroment

Hi, Anneke, I like your observation that budgetin (...)

  Arif ur Rehman, Professor, Pakistan

On Weaknesses of Traditional Budgeting 5: The Trisemester Way

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  Jagdish B Acharya, Consultant, India

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On Weaknesses of Traditional Budgeting 3: Now Useless

This weakness of traditional budgeting in many org (...)

  Alpin McGregor, freeelance, United Kingdom

On Weaknesses of Traditional Budgeting 3: Use Budgeting Appropriately

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  George Kerstholt

On Weaknesses of Traditional Budgeting 3: Don't Use Budgeting for History Only

If budgeting is used as a means of reference for a (...)

  Donald Liveley, Teacher, United States

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  Hakvoort, Business Consultant, Netherlands

Weaknesses of Annual Budgeting: 8. Perspective of Cost Control

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  palermo, ICT Consultant, Chile

On Weaknesses of Traditional Budgeting 3: Not Useless...

Hello Anneke, I agree with your statements except (...)

  CHIEDU UDE, CEO, Nigeria

Weaknesses of Traditional Budgeting: 9. Included in Project Management Tools

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  ADAM SAID, Student (Other)

Another Weakness of Budgeting: 10. Vulnerable for Cost Cutting

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  Sergey Baltin, Manager, Russian Federation

All Mentioned Weaknesses do not mean Budgeting is Useless

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  K.Narayana Moorthy, HR Consultant, India

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- It is not oriented to long-term vision. - If it (...)

  JC de Jong, Director, Netherlands

Waste of Energy, Causes Sandbagging

Hello Anneke, I agree with your points and the two (...)

  jiun, Student (University), Malaysia

On 3. Useless: Managers don't see the Value of Budgeting

The weak points and strengths of budgeting should (...)

  Istvan Szeman, Consultant, Hungary

Budgeting-Rocket Science?

@: My observation is budgeting is still a great ap (...)

  Istvan Szeman, Consultant, Hungary

Missing Process and Software Support

One essential (and missing) building block is a we (...)

  NANG Theophile, Student (University), Cameroon

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Hi all, I appreciate what is previously said by @ (...)

  Dobson, Project Manager, Canada

Weakness of Traditional Budgeting

I agree with @ that typically budgeting takes on a (...)

  RUBEN ACOSTA, Manager, Mexico

Weaknesses of Annual Budgeting

Dear Anneke, you are just right in your observatio (...)

  Donald Liveley, Teacher, United States

Lack of Process and Software..

The reason that processes and technological suppor (...)

  Adam Mohammed Baba, Director, Ghana

Weaknesses of Traditional Budget, 3 Useless

Political interference as a result of political ex (...)

  K.Narayana Moorthy, HR Consultant, India

Weaknesses of Traditional Budgeting

I agree with Adam Mohamed Baba - budgeting must be (...)

  ADAM SAID, Student (Other)

Careful with the Effectiveness of Numbers

I think indeed numbers are effective tools for dec (...)

  Michael T Iorngurum, Manager, Nigeria

Weaknesses of Traditional Budgeting

Your reasons are cogent (Editor: ~convincing). Par (...)

  George Kerstholt

Weaknesses of Traditional Budgeting

@: unless I misunderstand you. Imho budgets are us (...)

  K.Narayana Moorthy, HR Consultant, India

Weaknesses of Traditional Budget

While it is agreed that a budget is important, it (...)

  Istvan Szeman, Consultant, Hungary

Weaknesses of Traditional Budgeting

@: I agree with you very much with regards to usua (...)

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