Incorporating elements of Beyond Budgeting

Thumbnail Image

Files

URL

Journal Title

Journal ISSN

Volume Title

School of Business | Bachelor's thesis
Electronic archive copy is available locally at the Harald Herlin Learning Centre. The staff of Aalto University has access to the electronic bachelor's theses by logging into Aaltodoc with their personal Aalto user ID. Read more about the availability of the bachelor's theses.
Unless otherwise stated, all rights belong to the author. You may download, display and print this publication for Your own personal use. Commercial use is prohibited.

Authors

Date

2023

Department

Laskentatoimen laitos

Major/Subject

Mcode

Degree programme

Laskentatoimi

Language

en

Pages

33+6

Series

Abstract

New methods in management control seek to avoid the pitfalls of budgets, moving away from their time-consuming nature and emphasis on cost reduction, and instead placing a greater focus on value creation. Plenty of discussion evolves around beyond budgeting that aims to abandon budgets, even though organizations have made limited progress in their endeavors to eliminate or substitute budgets (Østergren and Stensaker, 2011). This thesis is a single case study that investigates the challenges a case company has faced at the early stages of adopting parts of the beyond budgeting (BB) principles into their operations. It shows how does budgeting without a budget function in practice, and how management control is run by a single control system that includes the purposes of planning, target setting, budgeting, and evaluation metrics. The findings indicate that ambitious targets sometimes lead to criticism, and traditional budgeting along BB might cause barriers that might affect the effectiveness of operations.

Description

Thesis advisor

Vaivio, Juhani

Keywords

management control systems, traditional budgeting, beyond budgeting, strategic planning

Other note

Citation

Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-202402042319

Collections

[kand] Kauppakorkeakoulu / BIZ