Business Insights Guide

Types of Budgeting Methods

BorgWarner utilizes these strategies in different ways. Earnings calls often highlight our performance against historical data. The Long-Range Planning (LRP) process generally combines top-down and bottom-up budgeting methods, aligning with the Parallel budgeting approach. Also, zero based budgeting is being specifically focused on in some Business Units (BUs).

How does the HR department participate in Long-Range Planning (LRP)? What elements of the HR budget are influenced by a bottom-up approach, and what processes inform those choices? Which budget items are determined by a top-down strategy, and how does this impact your overall strategy and operations? What implications would arise from shifting to Zero-Based Budgeting (ZBB) from a historic-based budget? Keep in mind that AI can be a valuable tool for exploring these concepts further!