ABSTRACT

This chapter proposes that key performance indicator (KPI) forecast management is based on the idea that problems with budgeting systems can be overcome by introducing the essence of the beyond budgeting model (BBM) into budgeting systems without abolishing budgets. It presents a survey conducted from February to March 2015 and designed for 1,863 Japanese companies listed on the first section of the Tokyo Stock Exchange (TSE). The chapter shows the survey results of performance measurement items of profit centers, and describes which performance measurement items are most important to profit-center "managers". The survey results show that in both FSCs (companies listed on the first section of TSE) and MCs (companies listed on TSE Mothers) the response that the amount of a bonus depends on the degree of attainment of company-wide financial targets and profit-center financial targets.