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The pros and cons of budgeting process

StylPen’s CEO recently attended an IMA seminar and got excited about a workshop entitled “Beyond Budgeting” by Jeremy Hope and Robin Fraser who argued that budgets, rather than providing a net benefit for firms, were actually too expensive, time-consuming and ultimately detrimental to the achievement of organizational goals. A quote from the workshop brochure states

Traditional budgeting is counter-productive in today’s fast-paced and highly competitive environment. Instead of tinkering with current budgeting systems, managers would be better off abandoning budgeting altogether – that is, companies should move beyond budgeting.

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Write a memorandum (about 3 pages) to the CEO that discusses the strengths and weaknesses of budgeting. Conclude your memo with recommendations concerning the use of budgeting at StylPen.

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