STRATEGIC PLANNING THINKING USING BEYOND BUDGETING MODELS AS TRADITIONAL BUDGETING ALTERNATIVES: STUDY IN ABC INDONESIA

• Main Author: Miqdam, Muhammad
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/35460
• Institution: Institut Teknologi Bandung

Besides having important part in financial sections, budgets nowadays also became one of the most important tools for managers use in their activity due to the ability to act as coordination tools between several internal departments and or resources, as tools for decision making and also as observations and evaluation tools on managerial level. Budget observations and evaluations will shows how effective and efficient the current budgeting method for the certain industry. Observations and evaluations sometimes will give an insight in budgets basic problems, such as budget slacking, budgeting bias, and other problems that need to be dealt with. Several organizations and industries, including ABC Indonesia, nowadays operates in volatile business environment, and without the appropriate planning and responsive actions, an organization will not be able to maintain their existence in the industry. For that reason, an organization need the specific tools where the managements is able to responds to the business environment changes quickly, such as one of the beyond budgeting tools, rolling forecast. Through the analysis conducted from external and internal business environment using extensive interview, TOWS Matrix, PESTEL analysis, its is found out that the current traditional of twelve-month budgeting is already almost inapplicable in current business environment and also did not properly serves as performance evaluations tools for internal environment. In the other hand, the implementation of rolling forecast models in ABC Indonesia, by identifying several key factors which able to drive the whole organization process, is able to overcome some problems of traditional twelve-month budgeting method. The implementation of those beyond budgeting models also should be complimented by the implementation of transparency of information in order to easiness in data and information analysis to support continuous planning. Mixed approach of top-down and bottom-up approaches also needed to balancing between ideas and execution.