Beyond Budgeting: A Collaborative Approach to Achieving Goals and Objectives

The group assignment aimed to explore the concept of beyond budgeting and its applications in various organizations. Each member played a vital role in achieving the project's goals, with A gathering secondary data related to beyond budgeting and SH bank, B finding suitable journals on the topic, and C coordinating efforts and developing strategies to complete the project on time. D and E evaluated findings and identified future research topics. The whole project was accomplished through combined efforts.

Management accounting for
control
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Table of Contents
PART 1 – PLANNING.........................................................................................................................3
Explanatory/Descriptive notes detailing current knowledge regarding subject area and its current
application........................................................................................................................................3
Importance of the subject area to the management accounting role................................................4
Potential impact of subject area on the role of management accounting.........................................4
Part 2.....................................................................................................................................................4
1. An overview of the journal article and its aim ............................................................................4
2. Test and findings of the research study ......................................................................................5
3. Critical assessment of the research aims and findings ................................................................5
4. Presenting the comparison of Journal and its contribution to the subject...................................6
5. Discussing the issues that would benefit to the further research ................................................7
6. Preparing a record of interactions with staff ...............................................................................7
7. Conclusion ..................................................................................................................................8
part 3 ....................................................................................................................................................8
Personal reflective or development discussion................................................................................8
REFERENCES...................................................................................................................................10
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PART 1 – PLANNING
Group Name: Beyond Budgeting Research Group (BBRG)
Subject Area: Beyond Budgeting
The subject area selected for the study to investigate is Beyond Budgeting (BB). The central
aim behind this is to assess the effectiveness of traditional budgeting practices on Management
Control System (MCSs) and compare it with an alternative approach, named BB.
List of academic research paper:
Name of Author Year Title of research paper
Niels Sandalgard and Per
Nikolaj Bukh
2014 Beyond Budgeting and change: a case study
Nalan Mejzini and Hendrik
Seidel
2015 Challenging the Principles of the Beyond
Budgeting Model
Alexa Michael and Technical
Information Service
2007 Beyond Budgeting
Cardos Ildiko Reka, Pete
Stefan, Cardos Vasile Daniel
2013 Traditional Budgeting V/s Beyond Budgeting.
Explanatory/Descriptive notes detailing current knowledge regarding subject area and its current
application
In the traditional budgeting practices, managers estimate their future expenses and revenues
and administrate operations accordingly. The main limitation of historical budgeting practices is it
do not account for market fluctuations, however, in the present times, volatility in the external
market conditions greatly impact business performance (Dekker, 2016). Evidencing through the
case of Wembley Stadium, managers forecasted that the cost of the project will be 445m and sold to
FA 757m. However, due to sudden increase in price of material, actual cost of the Multiplex rose to
975m and caused a loss of 150m. No proper accounting in budgets regards to sudden rise in
material price was the reason for this biggest difference. It is mainly because, in the current era,
where market is changing at faster pace it becomes very difficult for the companies to accomplish
their budgeted targets by coping up immediately with the evolving environment. As a result, the
importance of traditional or historical budgeting practices has fallen and companies started to chose
Beyond Budgeting concept can be evident from the case of Borealis (Heupel and Schmitz, 2015). It
is a leading manufacturer company who adopted BB approach for the more realistic estimation of
cost. Through applying this budgeting concept, managers reduced their fixed cost by 30% in 5
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years.
Importance of the subject area to the management accounting role
The rationale behind selecting this particular area of study is that although budgeting is of
great importance for the managers to put their control over utilization of resources, but still, in the
real business practice, managers heavily relied upon their estimation and projection and in the
present time of high market volatility, concept of budgeting has fallen under heavy criticism. As a
result, companies move towards modern alternative, called BB (Sirkiä and Laanti, 2015). It will be
of great importance for the managers for the managers to establish effective control over resource
utilization to ensure optimum or maximum use of it. It is flexible modes of budgeting that
encourage managers to respond quickly to the market changes (Kaplan and Atkinson, 2015).
Through this, they can reduce their cost, create direct channel of communication by shifting towards
decentralized groups and reach targets easily.
Potential impact of subject area on the role of management accounting
The selected area of BB will be of extensive importance for the managers to control their
business cost. Moreover, looking at the present times of rapid market changes, it is essential for the
managers to take into account the potential changes in market and assess their impact on routine
functioning. BB plays a great role in fulfilling these objectives as it overcomes the limitation of
traditional budgeting and make more realistic projection (Esther, 2015). It will deliver valuable
benefits to the organizations as they will be highly able to quickly respond according to market
changes by taking necessary actions. Integration of BB will enable managers to pay focus on their
potential performance, however, traditional budgeting focuses on historical results and outcome
(Heinzelmann, 2015). Moreover, financial managers can adopt innovative business strategies for the
better execution of their daily activities and meet targets. Furthermore, in BB, managers will be able
to set more realistic targets taking into consideration market changes and volatility, henceforth, they
can ensure optimum and maximum utilization of resources and reduce their business cost to a
maximum extent (Luft, 2016). Apart from this, BB considers customer as centre or root henceforth,
the aim of every business strategy is satisfy the expectations of consumers. It will deliver benefit of
increasing loyalty among customers.
PART 2
1. An overview of the journal article and its aim
For this study, research paper on the topic such as ''Challenging the principles of beyond
budgeting model'' has been selected. In this paper, researcher has been stated that budgeting is the
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most effectual tools which is still used by the companies to for the purpose of cost estimation and
profit planning etc. Hence, by using such tool business unit can ensure the effective use of the
financial resources (Tappura and et.al., 2015). However, approaches of traditional budgeting are
highly time consuming which limits the significance of it. Hence, in this regard, by using the
beyond budgeting business organization can make effectual plan and thereby exert control on
financial aspects. In the study, scholar presented the principles of beyond budgeting which are
highly significant in
Aims of the study are enumerated below:
 Do the principles of beyond budgeting (BB) overlap with any characteristics of traditional
and other budgeting approaches (Mejzini and Seidel, 2015).
 What is the extent to which beyond budgeting is able to cover all the possible functions.
 Does Svenska Handelsbanken able to operate the beyond budgeting.
2. Test and findings of the research study
Test: Research paper showed that secondary data has been gathered by the scholar to find
out the suitable solution of issue. For this purpose, researcher evaluated the findings of other
researchers to get deeper understanding about the topic. Further, to strengthening the findings of
such study researcher has been selected Handelsbanken which one of the largest bank of Sweden
with 460 branches. It offers effectual banking services to the customers and making efforts to make
optimum use of finance. Thus, secondary data has been used to resolve the research issue.
Findings: From such study researcher has been found that SH is highly able to operate and
applying the system of beyond budgeting. Moreover, from secondary data analysis it has been
assessed that business unit has beaten the competition level to the large extent. Along with this, to
measure the performance level SH used return on equity, market share and volumes etc. Thus, this
aspect clearly reflects that BB has fulfilled the gap of traditional budgeting. Now, company places
emphasis on setting on the competitive measures rather than fixing the performance target.
Moreover, all such KPI's helps in making realistic performance measurement. Moreover, it enables
firm to take competent action and thereby build or sustain competitive edge over others.
Hence, by considering all such aspects it can be stated that BB technique is highly effectual
over the traditional methods. In addition to this, from investigation it also has been determined that
the principles of BB does not overlap with other budgeting approaches. Further, SH undertakes a
league system to compare the financial performance of the regions and branches with each other. In
order to motivate the personnel for performing the business task more effectively SH publishes
ranking statement and thereby provide information about the region which has been performed so
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well. This in turn encourages personnel to attain higher position by meeting KPI's. Thus, it can be
said that by principles of BB are highly effectual in comparison to the traditional ways of
budgeting.
3. Critical assessment of the research aims and findings
By making analysis of the journal it has been found that researcher has presented the fair
solution by conducting the in-depth analysis of each question. Moreover, in the published study
researcher presented the comparative analysis of BB with other budgeting approaches and methods.
Hence, it presents that BB technique bridged the gap of other budgeting techniques. Thus,
researcher addressed the first and second question to the large extent by taking into consideration
the comparative analysis measure. Moreover, it clearly reflects and provide information regarding
the extent to which BB technique is more effective in comparison to others. However, on the critical
note, it can be stated that researcher had not made in-depth evaluation of BB principles in against to
the other approaches or practices of the budgeting.
On the other hand, to evaluate the ability and efficiency of SH data has been gathered and
analyzed by the scholar in relation to BB technique adopted by it. In this way, by using secondary
data researcher had addressed the third question framework more effectively and efficiently. Thus,
by taking into account all such aspects it can be stated that secondary research technique used by
the scholar is highly effective. Moreover, researcher can evaluate the success of budgeting
technique used by SH only when they gather data about the company's performance. Moreover, BB
lays emphasis on the application of realistic measures namely market share, ROE etc. Thus,
researcher had met all the aims and objectives of study to the great extent. However, secondary
investigation of the scholar criticized on the basis of findings which is used by the researcher.
Moreover, for preparing thesis and gaining understanding about the topic articles from the year of
1972 to 2011 used by the scholar. However, researcher had not evaluated the current findings
presented by others on such topic. Moreover, current findings help in presenting the fair view of
study to the large extent.
4. Presenting the comparison of Journal and its contribution to the subject
Journal which is used for this report has several good points which make the study more
effectual. Moreover, in the study researcher presented on the basis of first principle that company
needs to make focus on beating the competitors rather than only concentrating on the preparation of
budget. However, on the critical note, Bourmistrov and Kaarbøe (2013) said that activity based
budgeting is highly effectual over others. Moreover, by using such technique scholar can make
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proper estimation about the cost which they actually incur to achieve the goals and objectives.
Besides this, principles of resource allocation is followed by the SH with the aim to
practising better budgeting. Hence, this is one of the main similarities which takes place in several
budgets such as rolling, ABC, traditional and balance scorecard. Further, another principles of BB
are also included in the such types of budget to the large extent. Hence, according to Henttu-Aho
and Järvinen (2013) the major difference is that beyond budgeting is the sum of all budgeting
principles which make the planning process more effective. It is clearly mentioned in the study that
third principle of BB imply that company needs to prepare rolling budgets with the aim to monitor
the strategies implemented by them (Mejzini and Seidel, 2015). Hence, by following such aspects
SH follows rolling cash forecast to meet all the banking standards to the large extent.
5. Discussing the issues that would benefit to the further research
There are several issues which has been identified by the scholar from present study. Now,
resources are highly limited and closely influence the growth of the firm. In this way, by conducting
the further study on resource allocation aspect researcher can grab the attention level of readers. The
rationale behind this is that resource allocation is the main task of budgeting. In this regard, by
conducting study on such topic researcher can provide other business organizations with the
detailed framework or analysis. Along with this, researcher can also build competitive edge over
others by assessing the measures which contribute in the developmental aspect of BB principles. In
this way, by presenting the effectual facts searcher can build distinct image at marketplace.
6. Record of interactions with staff
In the group such as Beyond budgeting high level of interaction takes place among the
members. Moreover, one of the aim objectives of group member is to present the fair solution of
issue by conducting in-depth discussion within the suitable time frame. With the aim to present
study within the given time frame team members had made use of effectual communication tools.
On initial level, all the five team members delegated the task as well as roles and responsibilities.
Thereafter, by using mail, video conferencing technique etc. team members have provided
information about the project to each other. In this way, all the members of team updated to each
other regarding progress and level of project. Hence, all these aspects clearly reflect that high
interaction takes place among the team members.
7. Conclusion (200 words)
From this assignment, it has been concluded that management accountant makes vital
contribution in the growth and development of the firm. Moreover, such accountant furnishes
information to the higher management regarding the cost, inventory level etc. Besides this, it can be
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inferred that subject such as beyond budgeting also has high level of influence on the role of
management accountant. Moreover, such professionals play a vital role in formulating the suitable
budget to the large extent. Further, it also has been articulated that research is relation to the beyond
budgeting will help companies in the implementation of such technique. It can also be revealed that
study and its outcome are highly significant for other scholars who will conduct study on such
topic. Further, it can be summarized from the investigation that all the members of the team have
made significant contribution in the accomplishment of project. Further, being a member
personality traits and skills of mine has also been developed from such activity. Thus, such
assignment will help me in building the bright career in the field of management accounting.
Besides this, it also has been articulated that teamwork helps in accomplishing the project within the
suitable time frame. Moreover, team includes people from different background who have varied
skills and abilities. In this way, through the means of combine efforts team is become able to get the
desired level of outcome or success. However, if leader fails to maintain the cohesiveness then it
negatively impacts team work and thereby success.
PART 3
Personal reflective or development discussion
Group project in relation to the beyond budgeting develops my skills and abilities to the
large extent. Moreover, this project has developed my knowledge in relation the concept and
techniques of beyond budgeting. Thus, I would become able to attain success by applying the
knowledge in the business organization. In this way, such study would help me in becoming a good
management accountant and thereby assist in building the career or future more bright. Further,
such investigation has also developed time management skills among me. Moreover, being a
member of the team I have made may best efforts in relation to accomplishing the project on time. I
am learner type of person who lays high level of emphasis on learning the new-new aspects. Hence,
I prefer to learn from the mistakes and ensures that all these will not be committed in the near
future. Besides this, at initial level I found difficulty in making co-ordination between the tasks
which are performed by all the team members. Thereafter, I have developed strategy in relation to
delegation of roles and responsibility. Hence, by assigning the tasks to each member I have
facilitated the accomplishment of tasks within the suitable time frame.
In addition to this, ability in relation to monitoring the progress level of mine has also been
developed. Moreover, with the aim to complete project on time I have setting down target for each
day. In this, by making comparison of the actual performance with the standard aspect I have
assessed deviations to the large extent. Along with this, problem solving of mine has also been
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developed to the large extent. Moreover, it is usual that problems are arises when we work in a
team. In this, I learn the ability in relation to developing and maintaining cohesiveness within the
team. This in turn would also help me in the developing the effectual leadership skills. Further,
problem solving and communication skills of mine has also been developed from this group
activity.
In order to carry out such group project more effectively and efficiently the role of co-
ordinator has been played by me. In such activity, I have provided details to the each member of
group about the extent to which project is completed. In addition to this, I have also played vital
role in relation to the delegation of roles and responsibilities among the members of team. I also
enjoyed the work to the large extent while conducting study on the topic of Beyond budgeting.
Moreover, in such activity, ideas are shared by each other with the aim to complete study on time.
From such investigation, I made experience in relation to attending the meeting which in turn also
developed my communication and other personality aspects. Beside this, from work I also found
that quality work has been performed by the members. All the members of team have made their
best efforts in relation to meeting the deadline to the significant level. Further, all the members
have also made their contribution in relation to developing and maintaining high level of interaction
with each other. Hence, by considering all such aspects it can be stated that such project has
developed high level of professional skills among me. This in turn helps me in building my career
or future more bright in this sector.
During the whole assignment each member of the group has made vital contribution for
achieving the goals and objectives. In group, every member such as A, B, C and D performed the
role which has been assigned to them. A is assigned with the role to gather data secondary data in
relation to beyond budgeting. Moreover, suitable solution of the reserach issue can be identified
only when team members have understanding about the substitute of traditional budgeting such as
beyond budgeting framework. A has made his best efforts in relation to generating enough data
about SH bank. Along with this, B is assgined with the responsibility to find our the suitable
journal on the topic of beyond budgeting with the aim to accomplishing the project in a an
appropriate manner. Further, I have played the role of co-ordinatior and developed strategies to
complete the project on time. In addition to ths, D and E have made evaluation of findings and
made efforts to find out the future reserach topic. Hene, the whole project or work is accomplished
with the combine efforts.
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REFERENCES
Books and Journals
Bourmistrov, A. and Kaarbøe, K., 2013. From comfort to stretch zones: A field study of two
multinational companies applying “beyond budgeting” ideas. Management Accounting
Research. 24(3). pp.196-211.
Dekker, H.C., 2016. On the boundaries between intrafirm and interfirm management accounting
research. Management Accounting Research. 31. pp.86-99.
Esther, I.O., 2015. Sustainable Budgeting and Budgetary Control in Public Enterprises in Nigeria.
The International Journal of Business & Management. 3(7). p.116.
Heinzelmann, R., 2015. Insights of using Beyond Budgeting ideas for performance management
and control in Norwegian companies. Controlling. 27(2). pp.96-101.
Henttu-Aho, T. and Järvinen, J., 2013. A field study of the emerging practice of beyond budgeting
in industrial companies: an institutional perspective. European Accounting Review. 22(4).
pp.765-785.
Heupel, T. and Schmitz, S., 2015. Beyond Budgeting-A High-hanging Fruit The Impact of
Managers’ Mindset on the Advantages of Beyond Budgeting. Procedia Economics and
Finance. 26. pp.729-736.
Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.
Luft, J., 2016. Management accounting in the laboratory and in social context: Four contrasts,
1975–2014. Accounting, Organizations and Society. 49(C). pp.9-20.
Mejzini, M. and Seidel, H., 2015. Challenging the Principles of the Beyond Budgeting Model.
pp.1-477.
Sirkiä, R. and Laanti, M., 2015. Adaptive Finance and Control: Combining Lean, Agile, and
Beyond Budgeting for Financial and Organizational Flexibility. In System Sciences (HICSS),
2015 48th Hawaii International Conference on (pp. 5030-5037). IEEE.
Tappura, S. and et.al., 2015. A management accounting perspective on safety. Safety science. 71
pp.151-159.
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