This site uses cookies to store information on your computer. Some are essential to make our site work; others help us improve the user experience. By using the site, you consent to the placement of these cookies. Read our privacy policy to learn more.


Better budgeting Logo cima

  CIMA |   Free |   CIMA |   2004 |   Thought leadership

On 24 March 2004, ICAEW and CIMA held a joint round table event at Chartered Accountants Hall. The intention of the gathering was for senior members of both institutes to discuss some of the practical issues and challenges they face in planning and budgeting. The event was introduced by Paul Druckman, deputy president of ICAEW and chaired by Charles Tilley, the chief executive of CIMA.

The evening started with presentations from Dr Mike Bourne of Cranfield School of Management, Dr Peter Bunce of the Beyond Budgeting Round table and Dr Stephen Lyne and Professor David Dugdale from the University of Bristol. They set the scene for the day by presenting the results of their research and highlighting the latest thinking on the subject.

In the ensuing round table discussions, participants highlighted examples of best practice in their own organisations, as well as suggesting areas deserving of further research or improvement. The debate was lively, and, if there was one overall conclusion of this session, it was that budgeting is alive and well, though practice is evolving with new tools and techniques.

The event was held under ‘Chatham House’rules, i.e. participants could be open in the knowledge that their comments would not be attributed to their companies, many of whom were large and well-known. (PDF 479KB)

Topics covered:
  • Management accounting: Technical: Business planning: Planning, forecasting & budgeting, Expert

Flash Player 9.0.0 or above

4 Comments/Reflections

Tim Baker

Tim Baker Nov 2021

Interesting articles that offer insight to more efficient budgetary processes. I can take some of the key points and try to implement within my department, within the Public Sector.

Public Sector budgeting is very bureaucratic, which focusses mainly on cost cutting. Such cost cutting tries to improve on service efficiencies that develop from the changing needs of service users.   
The current budgetary process could be improved by shifting focus to adaptive performance management. Improving data modelling and forecasting are key elements which I need to try to introduce to my directorate. 
Engaging with business partners and strategic managers to shift focus from inward looking controls, to incorporate changes in the external environment, should help in the identification of risks. 
Bringing together people from across services, as well as data performance, would help to develop data modelling and hopefully create a central model, useful to all involved. 
Improvements to forecasting should not only help to identify shifts in trends but also in the management of future results. 
Kevin Ryan

Kevin Ryan Aug 2018

A useful report reviewing how businesses still use budgeting and where we could improve the process through adaptive performance management and the principles to implement if you wish to follow that process. It gives me something to consider for our organisations next budgeting round
Michael Hall

Michael Hall Oct 2016

Although the company did compile a budget those who were to mange it were not involved as much as they should have been.
Also Head Office built further requirements into the budget which although input were not freely accepted by all involved.
Some accepted this and were able to move forward others were not.
When looking to introduce forecasting to the business again it was accepted by certain individuals but those that didn't want to be involved were allowed to be excluded.
Ensuring everybody is involved and contributes is difficult but it must happen if we are to move forward together.
All budgets and forecasts once added together become the target for the business without all of the management team ensuring their own and others are committed then it has the potential to fail.
If the development capital project does not align with the cash flow and is not prepared to deviate or review spend then cash will not come out as planned.
Stating I have a budget will not improve our position, ensuring this is communicated and all parties are aware of the budget result is critical.
Michael Hall

Michael Hall Oct 2016

A useful insight into where business is at with budgeting and forecasting. Although there is no one solution the article does give pointers I could use to improve the current process or look to improve management input in getting an accurate budget for the business.