In this insightful podcast episode, the focus is on the concept of "beyond

budgeting" and its relevance in today's dynamic business environment.

The speakers, inspired by a seminar from a financial expert, delve into

the evolution of budgeting, tracing its origins back to 1923. They discuss

how traditional budgeting methods, designed for a more stable

economic era, are increasingly mismatched with the current volatile

global market.

The conversation highlights the limitations of annual budgets,

emphasizing how they fail to adapt to rapid market changes and create

a false sense of control. A significant part of the discussion revolves

around the need for financial systems within organizations to be flexible

and adaptable, aligning with modern operational methods.

An example of a forward-thinking steel manufacturing company is

presented, showcasing how innovative approaches to salaries,

feedback mechanisms, and employee involvement lead to greater

adaptability and success.

The episode concludes with a critical view of traditional budgeting

practices, advocating for a reevaluation of target setting, costing, and

resource allocation as distinct processes. This enlightening discussion

is a call to action for businesses to embrace more agile and responsive

financial practices in the face of today's complex and ever-changing

business landscape.