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Anneke Zwart, Student (University), Netherlands
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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
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On Weaknesses of Traditional Budgeting 6b: Changing Economic Enviroment
Hi, Anneke,
I like your observation that budgetin (...)
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Arif ur Rehman, Professor, Pakistan
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On Weaknesses of Traditional Budgeting 5: The Trisemester Way
In academics the fundamental shift from annual exa (...)
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Jagdish B Acharya, Consultant, India
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Weaknesses of Traditional Budgeting: 7. Budgeting is Often not Integrated with ERP
From past business results, vision of business lea (...)
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KALOGO PAUL
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On Weaknesses of Traditional Budgeting 3: Now Useless
This weakness of traditional budgeting in many org (...)
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Alpin McGregor, freeelance, United Kingdom
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On Weaknesses of Traditional Budgeting 3: Use Budgeting Appropriately
Surely problems arise with budgeting when it is no (...)
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George Kerstholt
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On Weaknesses of Traditional Budgeting 3: Don't Use Budgeting for History Only
If budgeting is used as a means of reference for a (...)
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Donald Liveley, Teacher, United States
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Budgets... They Have a Place But When Misused!
Budgets are about compliance (tactical) rather tha (...)
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Hakvoort, Business Consultant, Netherlands
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Weaknesses of Annual Budgeting: 8. Perspective of Cost Control
What's the definition of traditional budgeting? Tr (...)
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palermo, ICT Consultant, Chile
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On Weaknesses of Traditional Budgeting 3: Not Useless...
Hello Anneke, I agree with your statements except (...)
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CHIEDU UDE, CEO, Nigeria
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Weaknesses of Traditional Budgeting: 9. Included in Project Management Tools
Ensuring discipline and control are essential attr (...)
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ADAM SAID, Student (Other)
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Another Weakness of Budgeting: 10. Vulnerable for Cost Cutting
The mentioned weaknesses of (traditional) budgetin (...)
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Sergey Baltin, Manager, Russian Federation
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All Mentioned Weaknesses do not mean Budgeting is Useless
When you at the very beginning of installing budge (...)
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K.Narayana Moorthy, HR Consultant, India
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Further Weaknesses of Traditional Budgeting
- It is not oriented to long-term vision.
- If it (...)
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JC de Jong, Director, Netherlands
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Waste of Energy, Causes Sandbagging
Hello Anneke, I agree with your points and the two (...)
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jiun, Student (University), Malaysia
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On 3. Useless: Managers don't see the Value of Budgeting
The weak points and strengths of budgeting should (...)
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Istvan Szeman, Consultant, Hungary
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Budgeting-Rocket Science?
@: My observation is budgeting is still a great ap (...)
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Istvan Szeman, Consultant, Hungary
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Missing Process and Software Support
One essential (and missing) building block is a we (...)
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NANG Theophile, Student (University), Cameroon
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Weaknesses of Traditional Budgets
Hi all, I appreciate what is previously said by @ (...)
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Dobson, Project Manager, Canada
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Weakness of Traditional Budgeting
I agree with @ that typically budgeting takes on a (...)
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RUBEN ACOSTA, Manager, Mexico
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Weaknesses of Annual Budgeting
Dear Anneke, you are just right in your observatio (...)
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Donald Liveley, Teacher, United States
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Lack of Process and Software..
The reason that processes and technological suppor (...)
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Adam Mohammed Baba, Director, Ghana
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Weaknesses of Traditional Budget, 3 Useless
Political interference as a result of political ex (...)
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K.Narayana Moorthy, HR Consultant, India
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Weaknesses of Traditional Budgeting
I agree with Adam Mohamed Baba - budgeting must be (...)
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ADAM SAID, Student (Other)
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Careful with the Effectiveness of Numbers
I think indeed numbers are effective tools for dec (...)
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Michael T Iorngurum, Manager, Nigeria
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Weaknesses of Traditional Budgeting
Your reasons are cogent (Editor: ~convincing). Par (...)
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George Kerstholt
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Weaknesses of Traditional Budgeting
@: unless I misunderstand you. Imho budgets are us (...)
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K.Narayana Moorthy, HR Consultant, India
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Weaknesses of Traditional Budget
While it is agreed that a budget is important, it (...)
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Istvan Szeman, Consultant, Hungary
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Weaknesses of Traditional Budgeting
@: I agree with you very much with regards to usua (...)
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More on (Beyond) Budgeting
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Special Interest Group Leader
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