Abstract

http://ssrn.com/abstract=921474
 


 



Svenska Handelsbanken: Accomplishing Radical Decentralization Through 'Beyond Budgeting'


Theresa Libby


University of Waterloo - School of Accounting and Finance

Murray R. Lindsay


University of Lethbridge - Faculty of Management

July 31, 2006


Abstract:     
This case explains how Svenska Handelsbanken AB, (Handelsbanken), under the leadership of CEO Dr. Jan Wallander, not only successfully overcame a crisis in 1970, but through a change of policies, including the elimination of formal budgets and adopting a radical system of decentralization, has grown to become one of the most successful banks in Scandinavia. The case provides a rich description of the control system that Handelsbanken uses in place of relying on budgets - a system that underlies many of the principles that the "Beyond Budgeting" movement is espousing. The decision point in the case is whether the model of control could be widely adopted outside of Sweden and Handelsbanken in particular.

Keywords: Beyond Budgeting, decentralization, control system, Handelsbanken, Sweden, Jan Wallander, Budget

working papers series


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Date posted: August 3, 2006  

Suggested Citation

Libby, Theresa and Lindsay, Murray R., Svenska Handelsbanken: Accomplishing Radical Decentralization Through 'Beyond Budgeting' (July 31, 2006). Available at SSRN: http://ssrn.com/abstract=921474

Contact Information

Theresa Libby
University of Waterloo - School of Accounting and Finance ( email )
Waterloo, Ontario N2L 3G1
Canada
Murray Lindsay (Contact Author)
University of Lethbridge - Faculty of Management ( email )
4401 University Drive
Lethbridge, Alberta TIK 3M4
Canada
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