CASE STUDY BBRT

Rolling forecasts differ from budgets in several ways. The elements or factors measured are key performance indicators—KPIs—such as profits, cash flows, cost ratios, customer satisfaction, and quality. Existing literature approaches the diffusion of management accounting concepts from different perspectives, each one emphasising a particular set of reasons why an innovation does or does not diffuse. Existing accounting studies have alluded to this trade-off between identity and plasticity. Our analysis is guided by selected theoretical concepts from diffusion research. Then, we also […] spoke to the BBRT. And they typically start this by saying:

Management Accounting Research, 16 3 , Finally, it has also been recognised that supply and demand side interact when it comes to adoption or non-adoption of a concept. Whereas the initial idea was to run this as a one-year project, the work continued after the first year: Should we therefore conclude that a more lenient definition of Beyond Budgeting would have helped diffuse the concept more widely? It is far more unproblematic in this respect to introduce a new costing system or a set of additional performance indicators. So, it was more a complexion of the best that you can find, and extracting the gems from the rock, so you could actually make it into a coherent philosophy. Others distanced themselves from the idea of a full management model and rather focused on the promotion of particular components of Beyond Budgeting.

Membership has been decisive for financing the activities of the BBRT, and there seems to have been a certain trade-off between working to develop the content of Beyond Budgeting, on the one hand, and making the concept appeal to the public, on the other hand: At these companies, an annual fixed-performance contract no longer defines what subordinates must deliver to superiors in the year ahead. Indeed, Parkerin his textbook analysis, outlines the critical discourse on budgeting in the s and s and basically points to the same limitations as the proponents of Beyond Budgeting some 60 years later.

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Realising only a subset of these principles would effectively mean to take away its identity.

case study bbrt

As pointed out above, our genealogy of Beyond Budgeting invites comparison with other management accounting innovations, such as Activity-Based Costing or cwse Balanced Scorecard, which have become more widely disseminated. At first, this idea was perceived with extreme scepticism by the corporate centre.

Master Theses on Beyond Budgeting

This stands in contrast, for example, to the Balanced Scorecard Collaborative, which was established as a professional service firm Qu et al. Out of the four company cases, we choose two that we will refer to in more detail in this paper.

Reviewing this kind of work, Rogers lists five characteristics that many successful innovations have in common: The elements or factors measured are key performance indicators—KPIs—such as profits, cash flows, cost ratios, customer satisfaction, and quality. Others distanced themselves from the idea of a full management model and rather focused on the promotion of particular components of Beyond Budgeting. Working within CAM-I typically afforded access to a large network of actors interested in the development of new concepts.

Whereas the initial idea was to run this as a one-year project, the work continued after the first year: And we had some really difficult discussions with Harvard Business School Press as to what we are going to do about it.

Management Accounting Research, 16 1 In trying to improve their management practice, many organisations now also consider some of the managerial principles that Beyond Budgeting has called for, such as greater decentralisation or empowerment.

This was done to already make it emblematic regarding the wording: If they had a branch in cultural change, and they had a branch in development of trust, they might be successful with Beyond Budgeting. Accenture joined, for a year or two.

Read Master Theses on the Beyond Budgeting model here

The role of consultants Consulting companies can play a powerful role in the promotion and implementation of management innovations. After attending the conference, Akerburg came back with the names of firms that obviously had found ways to manage without budgets.

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There were ideas that developed over time. European Accounting Review, 11 2 So Jeremy and I had a difference of opinion. On the other hand, if a concept is too malleable, it risks loosing its unique identity, insofar as the applications of the concept may no longer be recognisable as realisations of one and the same idea. See discussions, stats, and author profiles for this publication bbdt The progress of the Beyond Budgeting movement Source: Whereas Star and Griesemer focus on an organisational context that requires direct cooperation among actors from different social worlds, Qu et al.

Case study bbrt

Even if organisations implement ABC or the BSC without changing their management model, they can claim to have adopted these innovations and both will still be stuyd as such. Hope took stock with budgeting on the basis of his experiences as a practitioner. The ABC bandwagon and the juggernaut of modernity.

case study bbrt

Instead of adopting fixed annual targets, business units set longer-term goals sfudy on studies caze as return on capital. Managing Performance with the Real Numbers. There is a high need for coordination and integration, and integration is one of the key success factors […] and there is a natural tendency towards centralisation.

We thought that there must be an alternative management model that allows even the large organizations of today to act by using its full potential — without all the gaming and mistrust culture of the budgeting system.