Zero Base Budgeting Using The Balanced Scorecard

Seminar paper from the year 2005 in the subject Business economics - Controlling, grade: 2,3, European University Viadrina Frankfurt (Oder), language: English, abstract: The Planning Process itself is often defined differently across companies. One company might think of it as encompassing everything from strategy development to operational planning and quarterly forecasting, to management reporting and performance scorecards. For another company, it might be nothing more than developing departmental budgets once a year. The real purpose of planning (which companies can easily lose sight of) is to improve decision making. But not only decision making is of interest, there are other questions that need to be answered, for example how to handle overhead costs, create more efficiency and effectiveness in the company, through an optimized communication process. In this term paper, two completely different procedures, namely Zero base budgeting and the Balanced Scorecard are analyzed. The first two chapters deal with the attributes of BSC and ZBB. A typical course of actions for both procedures is illustrated and analyzed. Subsequently advantages and disadvantages of both operations are elaborated and a conclusion is drawn. Zero base budgeting is a bottom-up process, which means it starts at bottom and ends at the top(-management). The Balance Scorecard is top-down procedure, which is exact the opposite. At first view, therefore a combination of BSC and ZBB appears to be logical and perfect matching. The schedule of this construct, where ZBB is combined with the BSC, is performed in chapter four. Both ZBB and BSC feature lacks, because every single procedure of the two focuses on a specific assignment and neglects other important aspects. The question is, can the lacks of ZBB and BSC compensate each other, so that finally a procedure is generated, which unites the positive attributes of both processes. In order to analyze and judge the construct of “ZBB using the BSC”, different criteria are defined in chapter five, and the construct is being judge by these criteria, which represent attributes, a successful strategic, tactical and operational planning system should fulfil. In the end, a final conclusion is drawn, if it is possible to unite ZBB and BSC and to generate a procedure, whose benefits generally considered lies above its costs.

A convenient and up-to-date reference tool for today's financial and nonfinancial managers in public practice and private industry If the very thought of budgets pushes your sanity over the limit, then this practical, easy-to-use guide is just what you need. Budgeting Basics and Beyond, Fourth Edition equips you with an all-in-one resource guaranteed to make the budgeting process easier, less stressful, and more effective. The new edition covers rolling budgets (forecasts), activity-based budgeting, life-cycle budgeting. Cloud computing, Balanced Scorecard, budgeting for nonprofit organizations, business simulations for executive and management training, and much more! Includes several new software packages, computer-based models and spreadsheet applications, including Value Chain Management software, Financial Planning and Performance software, Web 2.0, Cloud computing, and capital budgeting software Features case studies, illustrations, exhibits, forms, checklists, graphs, samples, and worked-out solutions to a wide variety of budgeting, planning, and control problems Offers financial planning and new types of financial modeling, variance analysis, Web-based budgeting, active budgeting illuminating "what-if" analyses throughout, spreadsheet applications, break-even analysis, project analysis, and capital budgeting Budgeting Basics and Beyond, Fourth Edition is a practical, easy-to-use problem-solver and up-to-date reference tool for today's financial and nonfinancial managers in public practice and private industry.

If the very thought of budgets pushes your sanity over the limit, then this practical, easy-to-use guide is just what you need. Budgeting Basics and Beyond, Third Edition equips you with an all-in-one resource guaranteed to make the budgeting process easier, less stressful, and more effective. Written by Jae Shim and Joel Siegel, the new edition covers Balanced Scorecard, budgeting for nonprofit organizations, business simulations for executive and management training, and much more!

A Practical Guide to Using the Balanced Scorecard performance drivers Nils-Goran Olve, Jan Roy and Magnus Wetter Since the groundbreaking work of Robert S. Kaplan and David P. Norton, the concept of the Balanced Scorecard has achieved increasing popularity in the business world. Previously, many organizations had built their business objectives around financial targets and goals that bore little relation to a long-term strategic vision. Typically, this leaves a gap between the development of a company's strategy and its implementation. The business scorecard, however, provides a more 'balanced view' by looking at not just-financial concerns, but also customers, internal business processes, and learning and growth. But it is not just a system of performance measurement - by focusing on future potential success it can be used as a dynamic management system that reinforces, implements and drives corporate strategy forward. In this book, the authors draw on their extensive experience with scorecard projects to provide a step-by-step method for introducing the Balanced Scorecard into an organization. This is done through the use of some of the most important practical examples in existence, with case studies from ABB, Coca Cola, Electrolux, British Telecom, Nat West, Skandia and Volvo. The desired strategic control system using scorecards that is presented focuses on creating and communicating a total comprehensive picture to all members of the organization from the top down, a long-term view of what the company's strategic objectives really are, how to make use of knowledge gained through experience and the required flexibility of such a system to cope with the fast-changing business environment. This book will provide senior and operational managers, consultants and business academics with a comprehensive view of emerging Balanced Scorecard practice supported by both business advice and a theoretical foundation. Reflections on the relations between the Balanced Scorecard and other areas, such as TQM, information systems and intellectual capital and knowledge management are also made. Business Strategy

"The budget and financial reporting processes are well knownsources of frustration for most CFOs. Seeking a quick fix to theproblem, the common solution is to pour more money into new andbetter software. This leaves the root cause, the inefficient anddysfunctional underlying processes and routines, unaddressed. Asthis book shows, substantial and sustainable improvements are onlyachieved through an holistic approach to process improvement,technology, strategy, and people." —Tom Henry Knudsen, Executive Vice President, Telenor EiendomFornebu AS, Proven methods for improving efficiency Corporations face a high turnover among financial managers,rapid changes in technology, lack of time and process redesignskills, and ongoing ambiguity about primary objectives behind thebudgeting and financial reporting processes. Amid this frenzy, itis the fundamental efficiency of these processes that dramaticallyimpact overall business performance. Process Improvement forEffective Budgeting and Financial Reporting provides financialmanagers with a compelling blueprint for increasing efficiency andeliminating waste of time and energy. Four operational experts layout an 80/20 plan-improving 80% of processes in 20% of the time itwould take to improve 100%-and explain a Business ProcessImprovement (BPI) plan that incorporates: The emerging trends affecting financial managers today Step-by-step process implementation Interviews with industry leaders, consultants, and managers whohave successfully instituted BPI plans Appraisals of the available software that can help or hinderthe process There is no substitute for improved efficiency. CFOs,controllers, budget managers, and financial analysts willsignificantly benefit from adding this authoritative guide to theirprofessional libraries.

No other management tool provides the operational direction that a well-planned budget can. Now in a new edition, this book provides updated coverage on issues such as budgeting for exempt organizations and nonprofits in light of the IRS' newly issued Form 990; what manufacturing CFOs' budgeting needs are; current technology solutions; and updated information on value-based budgets. Controllers, budget directors, and CFOs will benefit from this practical "how-to" book's coverage, from the initial planning process to forecasting to specific industry budgets.

Monograph on zero-base budgeting as a practical management planning tool for evaluating costs and improving profitability - outlines the procedures of zero-base budgeting, describes its use in establishing budgetary priorities, improving efficiency and reducing budgets, and includes modifications needed for specific requirements. Diagrams and statistical tables.

A budget is a financial action plan for an organization. This guide will teach you how to: - Forecast future business results, such as sales volume, revenues, and expenses - Reconcile those forecasts to organizational goals - Obtain organizational support for your proposed budget - Fine-tune your budget over time