Thursday, July 5, 2007

On Re-Evaluating the Traditional Budget

Recently I received a message from Pierre Naudé, Head of Performance Management for IS Partners (a Microsoft Gold Partner in South Africa) who is an advocate of the Beyond Budgeting method (from the Beyond Budgeting Round Table community) for adaptive planning.

Pierre has written an excellent and timely article on Re-Evaluating the Traditional Budget, which argues for new thinking that "makes strategy and planning an open, continuous and adaptive process".

In the lead-up to the release of PerformancePoint, I'm pretty sure a raft of whitepapers will surface from Microsoft; I believe such literature should include coverage of how PerformancePoint Planning may be used to satisfy different budgeting paradigms, from traditional budgeting to emerging methods like those proposed by BBRT and Kaplan & Anderson's Time-Driven Activity Based Costing.

Thanks for sharing the article with us, Pierre!

- Adrian Downes

No comments: