Our expertise

Budget process re-engineering

Submitted by admin on Thu, 23/12/2010 - 4:54pm

In many companies the budgeting system blocks efficient and effective allocation of resources. It even stimulates questionable decision making, dysfunctional behavior and does not promote performance motivation.

Companies competing in fast changing environments experience that budgets arelimiting responsiveness and are often a barrier to change. Budgets are prepared based on a number of assumptions about the evolution of the environment (e.g. prices, interest rates, demand of goods and services etc.). Companies operating in dynamic environments experience that shortly after next year’s budgets have been prepared these assumptions do not hold very long and feel the need for a more adaptive budgeting process.

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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Budget process re-engineering

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