Could be reported to line management in the form of control reports, comparing actual and budgeted results

If the variances are small or can be corrected easily then the information may not by feedback to anyone higher in the organization

Where feedback is sent to a higher level in an organization and can lead to a plan being reviewed and possibly changed

For example, the revision of a budget after large variances were discovered due to price changes over time

This could be by amending the inputs or process so that the system reverts to a steady state

For example, a machine may need to be reset over time to its original settings

Feedback reports should disclose both accomplishment and responsibility

Careful discrimination must be applied in selecting input variables

The feed-forward process is an evaluation and is concerned with the estimates of uncertain future. This problem of uncertainty is likely to limit application of the concept

Study of future is not well developed; neither are the tools that have potential for overcoming the problem of uncertainty

Demanding budgets are seen as more relevant than less difficult targets, but negative attitudes result if they are seen as too difficult

Acceptance of budgets is facilitated when good upward communication exists. The use of departmental meeting was found helpful in encouraging managers to accept budget targets

Up to the point where the budget is no longer accepted, the more demanding the target the better the results achieved

Managers' reactions to budget targets were found affected both by their own personality and by more general culture and organizational norms

Budgets have no motivational effect unless they are accepted by the managers involved as their own personal targets

In a highly programmed and technological constrained environment

For those individuals who feel they have a low degree of control over their destiny

Where participation by itself is not adequate in ensuring commitment to standards and mangers can significantly influence the results

Where a process is highly programmable and clear, stable input-output relaionships

Where personality characteristics of the participation may limit the benefits of participation

Where a firm has large number of homogeneous units and operating in a stable environment

The evaluation is based upon the Cost centre head's ability to continually meet the budget on short-term basis

Performance of the Cost Centre's head is linked to ability to increase the general effectiveness of his units's operations in relation to the long-term goals of the organization

Accounting data plays a relatively unimportant part in the supervisor's evaluation of the cost centre head's performance

It is a decentralized process, unlike traditional budgeting where leaders plan and control organizations centrally

Here the focus of the managers shift to improving future results

Proper delegation of authority to operational managers who are close to the concerned action and can react quickly

Operational managers do not restrict themselves to budget limits and focus on achieving key ratios

It eliminates some behavioural issues by making rewards team-based

Helps in motivating individuals by defining clear responsibilities and challenges

It creates information systems which provide fast and open information throughput to the organization

Beyond budgeting helps managers to work in coordination to beat the competition. Internal rivalry between managers is reduced as target shifts to competitors

Set organizational goals aimed at continuous improvement, not fixed annual targets

Reward shared success based on relative performance, not on meeting fixed annual targets

Make planning a continuous and inclusive process, not an annual event

Base controls on relative key performance indicators (KPIs) and performance trends, not variances against a plan

Make resources available as needed, not through annual budget allocations

Co-ordinate cross-company interactions dynamically, not through annual planning cycles

Focus everyone on improving customer outcomes, not on meeting internal targets

Create a network of teams accountable for results, not centralised hierarchies

Champion success as winning in the marketplace, not on meeting internal targets

Give teams the freedom and capability to act, don't merely require adherence to plan

Base governance on clear values and boundaries, not detailed rules and budgets

Promote open and shared information, don't restrict it to those who 'need to know'

Budget Model Objective = Efficient utilization of financial capital and other resources

Beyond Budget Model Objective = High degree of enterprise adaptability and constant innovation

Shift form top-down, centralized process to a more participative, bottom-up exercise in many firms

It highlights the level of improvement that can be achieved even with relatively simple modifications and a great deal of trust

Budgeting is evolving, rather than becoming obsolete - it depends on trust and transparency

Budgeting has changed, the changer has been neither dramatic nor radical. Instead, incremental improvements, with traditional budget being supplemented by new tools and techniques