MedWatch

Coloplast axed traditional budgeting process: "It wasn't promoting growth"

The Covid-19 pandemic has shown that the budgeting process can quickly become redundant. A lesson Coloplast had already learned from the financial crisis.

"We concluded that there was a massive amount of resources being wasted across the organisation as a result our model," Executive BVVP and CFO Anders Lonning-Skovgaard says of the traditional budgeting process. | Photo: Niels Hougaard/ERH

Before 2009, Coloplast's budgeting process often took up to half a year, seizing the time and effort of countless key people in the organization.

Several hundreds of Coloplast leaders met every yet in an auditorium in north of Copenhagen to tune budget constraints. Everybody had to assess how much money their individual unit was going to spend – on everything from HR to financing – every month for the next 12 months. Thousands of fields in forms were filled by function, region and country.

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