Budgeting of the strategic decisions in the DEST environment

Abstract

The purpose of the article is to substantiate the feasibility of integrating adaptive approaches to budgeting of strategic decisions, in particular Beyond Budgeting and scenario planning, as key tools for ensuring the sustainability and flexibility of enterprises in the DEST environment. Special attention is paid to formulating the value of such a hybrid approach for Ukrainian companies operating in conditions of increased instability and unpredictability.

The analysis of the problem is based on the study of existing concepts of the external environment, such as VUCA and BANI, as well as on the analysis of the impact of each element of the DEST acronym (Disruptive, Exponential, Start-up, Transparent) on the budgeting process. To achieve the goal, the essence and mechanisms of Beyond Budgeting and scenario planning are investigated. The article analyzes how these two approaches can complement each other to create a sustainable and flexible budgeting system. The current state of budgeting in Ukraine is considered an ideal "test ground" for the application of these approaches.

The study showed that classic static budgeting models become ineffective in the DEST environment, as they cannot provide the necessary flexibility, speed and adaptability. The Beyond Budgeting concept proposes a transition to continuous forecasting, flexible resource allocation and setting relative goals. Scenario planning, in turn, allows you to structure uncertainty and develop strategic and budgetary plans that will be resilient to various future scenarios. The integration of these two approaches creates a powerful hybrid, where scenario planning defines possible “models” of the future, and Beyond Budgeting provides operational and financial flexibility for rapid response. The Ukrainian context, exacerbated by a full-scale war, is a unique example where the challenges of the DEST environment are manifested as acutely as possible. This encourages Ukrainian companies, especially in such industries as IT, agribusiness and energy, to apply the principles of adaptive budgeting and scenario planning in practice to ensure survival and development.