The Research On The Strategy-focused Budget Management

Budget management is the modern management control system which is extensively used in large and medium size enterprises both at home and abroad. Many enterprises have notable effect as the result of the application. As market competition being fierce at the same time internal and external environment of enterprise is getting more and more complicated and changeable, so it has found two inherent defects .The first one is that disjoint from business strategy ,the next is that bargain with budget goal. As to this, " Beyond Budgeting " that minify the function of budget and "Better Budget" that rebuild budget index system is put forward. This thesis proposes the third kind of solution on the basis of the two previous solutions : budget management improvement on procedure system , the index system of the budget and system function, the budget management which is forming strategy and leading in order to overcome the limitation of traditional budget management.First, having been analysed the correlation between budget management and strategy, this article pointed out that one of present budget management flaws is budget management disjoints which strategy. After investigation, it is the reason that budget management lack connection with the enterprise strategy as well as the separation of the budget management and the strategic plan in the operation flow. We found the deep level reason lies in the traditional budget intrinsic structure, which lacks the effective tool description strategy implementation logic thus to be unable correctly to appear the enterprise value logical route. Moreover it caused the budget method to fall into erroneous zone by the financial data description value increment way. In order to overcome the limitation, this article proposed the strategic guidance budget management as improvement direction .We contrast and analyze balance improvement budget and Balanced scorecard (BSC), activity-based management (ABM),EVA as managed the strategic tool. Then we proposed that BSC,ABM and EVA has a more formidable strategy to carry out the function, put BSC to utilize in the budget management, towed the tool as the strategy, enhanced the strategic guidance the budget management feasibility, the realization budget management truly take the strategy as the guidance. Wish BSC to take the budget management and the strategic connection link, take the strategic guidance as the direction, the transformation budget target system and the budget establishment flow, thus will change the traditional route which under the traditional budget establishment method by the strategic decision budget, the budget decided the service goal, for new route the strategy through BSC decision service goal,by the service goal decision budget, will establish the strategic guidance again the budget; In this foundation, this article has made the strategic guidance improvement to the traditional budget control, namely proposed the budget variance analysis, the budget examination and critique, the reward drove the system the design all take BSC as a foundation, causes the strategic guidance the budget control to be able to realize. Finally this article analyzed the strategic guidance budget management to budget the superiority compared to the tradition which the administration center had, and aimed at the our country realistic situation to carries out barrier of the strategic guidance the budget management provided the solution the measure ?...