How does Beyond budgeting help to resolve the weaknesses of traditional budgeting?

Managers are set goals and targets to achieve rather than abiding by strict budgets and variances.

Managers have a much larger scope of business goals that, when achieved, will increase shareholder value.

Managers are given more freedom and control over their business units under Beyond budgeting.

Managers focus on keeping costs low in the short term to ensure maximised profits.

Managers are given incentives to meet or undercut budgets.

Managers are encouraged to designate responsibility to others to lessen their workload so they may concentrate on important tasks.