The Application of the Beyond Budgeting to Organisations —An Example of Application of Borealis Company

Abstract

Budget is a way of controlling for the managers to make decisions based on certain targeted figures which leads to their actual performance being compared with those targeted performance. However, as the concept of Beyond Budgeting was developed by the Beyond Budgeting Round Table by more than 50 global companies, the way of traditional budget has been questioned if it still need to be used in the organizations. This article is aim to analyze the key arguments of beyond budgeting which is used in the Borealis company. This paper also would like to evaluate the processes that Borealis implemented to replace budgets, and discuss whether abandonment of budgets are suitable for all originations.