Weaknesses of Traditional Budgeting

Beyond Budgeting > Best Practices Premium

Weaknesses of Traditional Budgeting
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 th... Register




On Weaknesses of Traditional Budgeting 3: Now Useless
KALOGO PAUL, Student (University), Uganda



Budgets... They Have a Place But When Misused!
Donald Liveley, Teacher, United States

Weaknesses of Annual Budgeting: 8. Perspective of Cost Control
Hakvoort, Business Consultant, Netherlands




All Mentioned Weaknesses do not mean Budgeting is Useless
Sergey Baltin, Manager, Russian Federation

Further Weaknesses of Traditional Budgeting
K.Narayana Moorthy, HR Consultant, India

Waste of Energy, Causes Sandbagging
JC de Jong, Director, Netherlands


Budgeting-Rocket Science?
Istvan Szeman, Consultant, Hungary

Missing Process and Software Support
Istvan Szeman, Consultant, Hungary

Weaknesses of Traditional Budgets
NANG Theophile, Student (University), Cameroon

Weakness of Traditional Budgeting
Dobson, Project Manager, Canada

Weaknesses of Annual Budgeting
RUBEN ACOSTA, Manager, Mexico

Lack of Process and Software..
Donald Liveley, Teacher, United States

Weaknesses of Traditional Budget, 3 Useless
Adam Mohammed Baba, Director, Ghana

Weaknesses of Traditional Budgeting
K.Narayana Moorthy, HR Consultant, India

This is a Good Observation
Nita, CEO, United States

Careful with the Effectiveness of Numbers
ADAM SAID, Student (Other), Cameroon

Weaknesses of Traditional Budgeting
Michael T Iorngurum, Manager, Nigeria

Weaknesses of Traditional Budgeting
George Kerstholt, Strategy Consultant, Netherlands

Weaknesses of Traditional Budget
K.Narayana Moorthy, HR Consultant, India

Weaknesses of Traditional Budgeting
Istvan Szeman, Consultant, Hungary


  Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  

Special Interest Group Leader

You here

More on Beyond Budgeting

Best Practices
  • Weaknesses of Traditional Budgeting

Expert Tips


About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2017 12manage - The Executive Fast Track. V14.1 - Last updated: 14-12-2017. All names tm by their owners.