Our expertise

Assessment of budget process effectiveness

Submitted by admin on Thu, 23/12/2010 - 4:52pm

When the environmental complexity increases, and the number of products, sales countries, customers and stages in the supply chain increase, budget preparation becomes more complex and time consuming. Managers feel that budget preparation consumes too many resources and feel that there is an unbalance between the time spent and the added value of the budgeting process.

Companies intending to implement an active strategy process will experience that the budgeting system is too much financially oriented. The exclusive focus on annual financial performance causes the budgeting processes only to motivate managers for short term behavior and sometimes causes a mismatch with operational and strategic decisions.

B&M helps clients to improve their budget process effectiveness. We help them to profit from implementing new budgeting functionalities and practices (such as linking budgets to strategy maps, the Balanced Scorecard and the linked strategic initiatives, the use of driver-based budget models, rolling forecasts, scenario simulations, use of Time-Driven Activity-Based budgeting, use of relative targets, the interactive use of budget numbers and learning etc…) and a better integration of planning and budgeting in the Strategy Management process. Our consultants describe the ‘As is’ planning and budgeting process, formulate re-engineering improvement actions, and help with the implementation of the improvement proposals.

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Assessment of budget process effectiveness

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