An endless debate: the sense and nonsense of budgeting

摘要

Purpose - This article aims to summarize several studies about how businesses currently practicernbudgeting in Western and Central Europe. While analyzing these studies in the larger context of thernongoing debate about budgeting's importance, it provides conceptual linkages between them andrnadditional insights into their findings.rnDesign/methodology/approach - The reported studies employ survey research, sometimes withrnpanels of self-selected interviewees within a single country and sometimes with samples of SMEsrnacross multiple countries.rnFindings - Recent survey results continue to show managers complaining about the wastefulness ofrnpreparing budgets, while steadfastly believing they are indispensable. Among others, Horvath andrnPartners accordingly advocate "advanced budgeting" concepts to modernize both planning andrnbudgeting processes. CFO-panel participants generally uphold the advocates' position except in therncrucial area of available IT-support. However, as explained next, connecting operational and strategicrnplanning is primarily a conceptual rather than a hard- or software problem. In the Europeanrnautomobile suppliers' industry, controlling services therefore generally still rely on a small set ofrnwell-understood standard tools.rnPractical implications - Firms not using these standard tools in their operational controlling riskrnfalling behind the competition. In order to close the gap between the perceived importance of andrnsatisfaction with more complex instruments, however, several tools require improvement orrnsimplification as well as conceptual clarity about how to employ them.rnOriginality/value - This article presents results from diverse studies on budgeting as currentlyrnpracticed, reform concepts, and obstacles to their implementation. In doing so, it discusses how theyrnrelate to one another and what their significance is for both theory and practice.