On 23 October, Knut Fahlén at Ekan Management (our local Beyond Budgeting Partner in Sweden) attended a packed breakfast meeting on the theme Beyond Budgeting. The organizer of the event was the West Swedish Chamber of Commerce.
Knut began by describing the budget’s origin including the conditions in the business environment, market and organizations. He then went over in today’s highly uncertain and changing reality to highlight why the traditional budgetary control has played out its role – “What many companies are looking for today is a more dynamic management model, which provides the opportunity to better adapt to the outside World.” The audience also agreed on the fact that the budget is a time consuming process. One of the delegates expressed his viewpoint: “We spend 40 percent of our time on the budget, and it is outdated all the time.” Someone else expressed the difficulty of changing such a strong institution budget process in their organization.
Several questions dealt with how to proceed in order to develop its business in the director of the Beyond Budgeting Framework. In that connection, Knut emphasized that Beyond Budgeting is not a recipe that each organization must follow. However, there are many tools and experiences to help you out in the process.