Abstract:

When Borealis, an integrated producer of plastics, used a traditional

budgeting process, the budget quickly became out-of-date in a competitive
environment because of so many planning assumption variables changed
hastily and dynamic market conditions. Its time-consuming budgeting
process served too many different purposes which hindered decentralized
decision-making. This case shows the effect of Borealis replacing its
traditional budgeting process and old financial planning and control systems
with four targeted management tools: rolling financial forecasts, Balanced
Scorecard, activity based costing, and investment management in its
financial statements. It also compares and contrast the traditional budgeting
and beyond budgeting.