Beyond Budgeting Model: An Example and Its Benefits

One example of a beyond budget model is the 'Beyond Budgeting' approach developed by the Beyond Budgeting Round Table (BBRT). This model is based on the idea that traditional budgeting approaches are too rigid and do not allow organizations to be agile and responsive to changing environments.

The Beyond Budgeting model suggests that organizations should focus on setting flexible goals and targets rather than fixed budgets. This approach allows companies to be more adaptable and responsive to changing market conditions, as they can adjust their resources and strategies as needed to achieve their goals.

The model also emphasizes the importance of decentralizing decision-making, empowering employees to make decisions and take actions that align with the organization's goals. This allows for greater innovation and creativity within the organization.

Overall, the Beyond Budgeting model encourages organizations to shift their focus from budgeting and control to more adaptive and collaborative approaches that foster innovation and agility.