Statoil Case:

1) The traditional budgeting process is deemed inefficient by some due to its draining effect on energy and time, as well as its tendency to conceal opportunities and hinder growth by focusing solely on cost reduction instead of value creation. Despite this, what is the purpose of the annual budgeting process that is commonly used in organizations, and are there any advantages to it?

The "Ambition-to-Action" approach used by Statoil combines Beyond Budgeting and the Balanced Scorecard to create an innovative management system for planning, resource allocation, and performance evaluation.

2) Whatarethemajordifferencesbetweenatraditionalbudgeting process and theStatoil"Ambition-to-Action"process?

3) What prompted Statoil to abandon budgeting and implement the Ambition-to-Action approach?