Beyond Budgeting: any chance for management improvement?
This study makes a comparative analysis of the discussion points brought up by Hope and Fraser in questioning what they call the “traditional” company budget format, with a view to identifying aspects that offer more adequate and effective company management opportunities to organizations. In this sense, the confrontation between both authors and the traditional ones leads to the conclusion that, once again, this discussion deals with a new cycle that tries to recover classic qualitative budget aspects that, once complied with, do not need a new label for the sake of effective company management. Although the approach recommends the possibility of not having an annual budget, strictly speaking, it proposes to emphasize a more strategic discussion, front line participation, greater confidence in managers, periodic result forecasting and elimination of the “fixed contract”, among other elements. The critical analysis was divided into two groups so as to distinguish between criticism in relation to budget limitations and that resulting from its inadequate usage. Finally, the authors do not solve some problems that may be caused by the nonexistence of a budget, besides creating other problems that would not exist without the proposal.