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The authors of this paper contend that too many firms' innovation initiatives are shackled with archaic budgeting and planning methodologies that are intended to protect managers from the embarrassment of blown budgets, missed deadlines, or market flops but instead suppress learning and adaptability, both critical to achieving successful commercialization of unique ideas. This paper aims to address this issue.

The authors propose that the first step to rid myopia and rigidity from the stage‐gate approach is to re‐conceive it as an assumption‐driven process centered on learning, rather than simply a sequence of activities marching towards a pre‐determined outcome.

The authors suggest that firms should adopt assumption‐driven learning in a series of sequential divergent‐convergent cycles – one cycle per stage – each centered on testing the major assumptions for that stage.

Continuous learning and unlearning is essential to the process of developing raw ideas into viable commercial applications. The key to success is to test assumptions through real‐life experiments – for example, market assumptions should be tested in‐market, manufacturability assumptions should be tested in production.

Firms should adopt assumption‐driven learning in a series of sequential divergent‐convergent cycles – one cycle per stage – each centered on testing the major assumptions for that stage.

During almost 30 years until 1992, two protracted wars provoked the massive dislocation of rural Mozambicans. During the 1980s, approximately four million people fled to zones of relative safety inside the country. Around two million more moved to neighboring countries. In the 1990s, the Mozambican government with the support of international donors faced the enormous problem of helping this population, between 40 and 50% of the total, resettle in their homelands.

The purpose of this paper is to provide a method for planning and controlling energy budgets for an industrial plant. The developed method aims to obtain a very high confidence of predicted electrical energy cost to include into the estimation of budget and a continuous control of energy consumption and cost.

The authors propose a methodology that refines effectiveness and efficiency of budget estimation. The method relies on a three‐stage analysis: energy consumption characterization and forecasting, energy budget formulation and energy budget control. In particular, this paper deals deeply with the second and the third stages, i.e. energy budgeting and control. The methodology has been developed on the basis of a continuous improvement philosophy and project management techniques. A discussed case study shows the potential of the methodology in order to discover energy consumption inefficiencies.

Energy budgeting and control has been implemented within a set of first and second level metrics. The first level indicators allow identifying the effect of an increase of specific consumption beyond the predicted. The second level indicators allow identifying the effect of variations of price, volume, mix or loading bands from the predicted.

In the paper climatic variations are not considered, limiting the energy drivers to those related to production volumes.

The method can be considered as a practical guide for energy budget planning and control of any industrial consumer.

A new approach to energy budgeting and control is proposed, allowing the impact of different specific consumption or production plans (volume, mix, and load bands) to be calculated.

This article examines the relationship between budgeting and strategic management, especially in terms of strategic planning. Strategic management presents managers with a process for making decisions and guiding a firm's actions, while budgeting provides information on funding and accountability. The article takes the position that the two processes should be tightly integrated as they serve complimentary but distinct purposes.

The article develops a model of how strategic management and budgeting should be intertwined. The model describes a cascading process by which a firm's general strategic direction and financial condition drive tactical decisions and resources allocations at lower organizational levels.

The article discusses ideas on how the budgeting and strategic management might be administered so as to have the best impact on firm performance. A key observation in the article is that overall firm performance is likely to be improved when the two types of planning are use properly. The article argues that disconnections between the two will result in budgets that hinder implementation of the firm's strategies or strategies which cannot be supported by the firm's finances.

The article provides several ideas for managers on how to achieve better integration between strategic planning and budgeting. They include creating a cascading planning process, in which strategic and financial decisions progressive move down through an organization's hierarchy, establishing standing strategic review committees, using rolling budgets, and the proper application of available technological tools.

This study aims to investigate the relationships among budget emphasis, budget planning models, and performance, to determine whether an emphasis on the budget has indirect effects on performance, in the presence of other budget planning characteristics as mediators.

A questionnaire survey was conducted and structural equation modeling was used to test the proposed models among the constructs and related hypotheses.

The results indicate that while budget planning models entirely mediate the influence of budget emphasis on the performance of management and the organization, they partially mediate the influence of budget emphasis on budget satisfaction. In addition, it is determined that differentiation strategies have a significantly positive influence on budget emphasis, budget planning models and performance.

The results of this study provide a reference for organizations in the design of budgeting systems. During the design process, budget planning models should consider the degree of emphasis an organization places on the budget.

This article aims to summarize several studies about how businesses currently practice budgeting in Western and Central Europe. While analyzing these studies in the larger context of the ongoing debate about budgeting's importance, it provides conceptual linkages between them and additional insights into their findings.

The reported studies employ survey research, sometimes with panels of self‐selected interviewees within a single country and sometimes with samples of SMEs across multiple countries.

Recent survey results continue to show managers complaining about the wastefulness of preparing budgets, while steadfastly believing they are indispensable. Among others, Horváth and Partners accordingly advocate “advanced budgeting” concepts to modernize both planning and budgeting processes. CFO‐panel participants generally uphold the advocates' position except in the crucial area of available IT‐support. However, as explained next, connecting operational and strategic planning is primarily a conceptual rather than a hard‐ or software problem. In the European automobile suppliers' industry, controlling services therefore generally still rely on a small set of well‐understood standard tools.

Firms not using these standard tools in their operational controlling risk falling behind the competition. In order to close the gap between the perceived importance of and satisfaction with more complex instruments, however, several tools require improvement or simplification as well as conceptual clarity about how to employ them.

This article presents results from diverse studies on budgeting as currently practiced, reform concepts, and obstacles to their implementation. In doing so, it discusses how they relate to one another and what their significance is for both theory and practice.