Budgets (6) Flashcards
Advantages of ABB (different activity levels)
Different activity levels will provide a foundation for base package and incremental packages of ZBB
Advantages of ABB (overall strategy)
Organisation’s overalls strategy and any actual or likely changes in that startegy are taken into account as ABB attempts to amange business as sum of interrelated parts
Advantages of ABB (critical success)
Critical success factors are identified and key metrics devised to monitor progress towards them
Advantages of ABB (whole activity)
Focus is on whole of an activity, not just separate parts, and so there is more likelihood of getting it right first time
Advantages of ABB (achieved)
ABB emphasises activities that are being achieved (the outputs)
What is beyond budgeting?
Traditional budgeting should be replaced in favour of using adoptive management processes and moving towards devolved networks
Managers in adoptive management processes?
Managers should plan on a more adoptive, rolling basis, but with the focus on cash forecasting
What is meant by devolved networks?
A culture of personal responsibility by delegating decision-making and performance accountability to line managers
What are values?
Bind people to a common cause, not a central planm
What is governance?
Govern through shared values and sound judgment, not detailed rules and regulations
What is transparency?
More information open and transparent, do not restrict and control it
What are teams
Organise around a seamless network of accoutnable teams, not around centralised functions
What is trust
Trust teams to regulate their performance, do not micro-amange them
What is accountability?
Base accountability on holistic criteria and peer reviews, not on hierarchical relationships
What are goals?
Set ambitious medium-term goals, not short-term fixed targets
