Beyond Budgeting and Performance Management : A multiple case study of how performance is managed drawing on the Beyond Budgeting principles
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This study aims at contributing to the Beyond Budgeting literature by investigating how performance is managed in companies that have implemented management control systems based on the Beyond Budgeting model. The aim of the thesis is to answer the following research question through a qualitative study: “How is performance managed drawing on the Beyond Budgeting principles?” To answer this question, a multiple case study was performed analyzingthree Norwegian companies; Equinor, a large energy company, Posten, a large postal services company, and Miles, a relatively small IT-company. A total of 10 respondents were interviewed for the purpose of the study. The cases focus on performance management divided into targets, measurement and incentives in the context of the Beyond Budgeting model.Our findings indicate that the implementation of a performance management system based on the Beyond Budgeting model varies. Not all aspects of performance management are in complete coherence with the Beyond Budgeting model, and the implementation of some of the principles are perceived as challenging and not quite practical. Our research suggests that one of the challenges concerns the use of targets. Relative targets were in use but were mainly centered around financial figures. The companies studied utilizes performance measurement generally in line with the model and evaluated performance holistically with peer feedback. Also, the incentive systems in use were not following the principles of Beyond Budgeting as group incentives were to some extent in use, but shared success against competition was not rewarded.
Master's thesis Business Administration BE501 - University of Agder 2019