“Beyond Budgeting” - Juergen Daum
“Beyond Budgeting” - Juergen Daum
“Beyond Budgeting” - Juergen Daum
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
The Underlying Philosophy of Beyond Budgeting –<br />
Aspect 1: Achieving Flexible Performance Management<br />
Traditional Performance<br />
Management Model<br />
New Performance<br />
Management Model<br />
(Fixed)<br />
Strategic Plan<br />
(Horizon: 5 Years)<br />
“Take<br />
that hill!”<br />
Adjustments to Strategy<br />
at Shorter Notice<br />
Annual<br />
Budget<br />
Operations<br />
Management<br />
Trapped in<br />
Annual Budget<br />
“The hill<br />
has moved!”<br />
Continual Adjustment<br />
of Operational<br />
Activities<br />
Continual<br />
reconciliation<br />
© SAP AG 2002, SAP HR & Financial Kongress 2002, D7 15<br />
Underlying Principle: Sense and Respond<br />
Traditional Model<br />
(“Make and Sell”)<br />
New Model<br />
(“Sense and Respond”)<br />
Resources<br />
Obtain Required<br />
Resources<br />
Production<br />
Production<br />
Warehouse<br />
Coordinate<br />
Manufacturing<br />
Customer<br />
Customer<br />
© SAP AG 2002, SAP HR & Financial Kongress 2002, D7 16<br />
8
Change language