Beyond Budgeting is the idea of making organizations perform better by changing their management model, including abolishing the traditional budgeting process. The model’s tested and proven leadership and management process recommendations makes organizations more adaptive and human, and helps making agile transformations successful. This book is written for decision makers within an enterprise. In nontechnical language it explains what Beyond Budgeting is, how it works, and why it improves performance through the use of actual cases where it has been implemented. It discusses what challenges will need to be overcome to make implementation succeed and provides the many benefits that can be realized once the organization has completed the implementation.
The future of management is here! Traditional management was invented for very different times and is today in serious trouble. The level of volatility, uncertainty, complexity and ambiguity in business environments is record high. People’s expectations towards their employers and leaders have also radically changed. A number of organizations are exploring management innovation that can help them not just coping but thriving and out-performing in these new and different realities. Beyond Budgeting may be the most important new idea out there addressing these radical changes, due to its broad scope and coherent approach. Abolishing the traditional, detailed annual budget is necessary, but not sufficient. Organizations on the journey are questioning their old leadership beliefs and are tearing up their old command-and-control management models, with “agile” and “human” as the foundation for a new start. Implementing Beyond Budgeting is both a theoretical introduction and a practical guide to bringing such a more empowered and adaptive management model to life. Drawing on the author’s twenty years of Beyond Budgeting experience, this book not only demonstrates the serious problems with traditional management through numerous practical examples. It also follows several companies on their Beyond Budgeting journey, including Scandinavia’s largest company Statoil where the author has been heading up implementation since 2005. You'll get a first-hand glimpse at the reality of transitioning a large multinational company, and gain a real-world perspective on what successful implementation entails. This new second edition has been significantly revised and expanded. It covers the amazing development of the Beyond Budgeting movement and how the Statoil implementation journey has continued since the first edition of this book was published in 2009, sustaining major events like for instance the 2015 oil price crash. A new chapter on “Beyond Budgeting and Agile” has also been added. New implementation experiences, great new case stories, new management innovation examples and management metaphors (traffic controls!) are introduced, as well as the author’s latest reflections on a range of management issues including target setting, forecasting, performance evaluation and incentives.
Beyond Budgeting is an idea that has been around for nearly two decades, and many members of the community have written books about the concepts and how to put them into practice. It has become clear, however, that companies attracted to these ideas have sometimes struggled to implement Beyond Budgeting, often because they have not understood the subtlety or the full implications of the ideas and how to execute change. In addition, those of us leading the Beyond Budgeting movement want to have the biggest impact on the world that we possibly can. And to do this we need to find a way to help as many people as possible to join us in putting these ideas into practice, without investing as much time and effort as we have getting to grips with them. The Viable Map is based on an idea that we have worked with for a number of years that helps people to describe their current management model in terms that made it easy for them to see what they needed to do to bring it into line with Beyond Budgeting principles. The original ideas have been improved and extended to create a methodology that helps managers and leaders to better understand Beyond Budgeting at a practical level, to describe their existing model, diagnose what is wrong with it and design a better one. The key idea in the book is that an organisation’s management model must be coherent, in other words be a good ‘fit’ both the nature of the environment in which it operates and the qualities of its people. Thus, its management processes (as defined by the Beyond Budgeting process principles) must be more adaptive when the environment is unpredictable and have a more devolved culture (as defined by the Beyond Budgeting leadership principles). The map itself is a simple grid upon which people can plot their Management Model and the book provides detailed guidance on how to do with with reference to typical practices and methods and how to help ensure coherence, in principle and in practice. It also describes typical ‘patterns’ to look out for, good and bad, and some real-life examples. In summary it will help people translate interest in Beyond Budgeting ideas into practical action and provides a methodology to help guide and coach companies through the transition.
The author describes the serious and systemic problems with traditional management practices, and provides concrete alternatives and practical guidance on how to implement the beyond budgeting methodology, drawing on cases in which he has implemented beyond budgeting in large, global companies.
Beyond Budgeting is an idea that has been around for nearly two decades, and many members of the community have written books about the concepts and how to put them into practice. It has become clear, however, that companies attracted to these ideas have sometimes struggled to implement Beyond Budgeting, often because they have not understood the subtlety or the full implications of the ideas and how to execute change. In addition, those of us leading the Beyond Budgeting movement want to have the biggest impact on the world that we possibly can. And to do this we need to find a way to help as many people as possible to join us in putting these ideas into practice, without investing as much time and effort as we have getting to grips with them. The Viable Map is based on an idea that we have worked with for a number of years that helps people to describe their current management model in terms that made it easy for them to see what they needed to do to bring it into line with Beyond Budgeting principles. The original ideas have been improved and extended to create a methodology that helps managers and leaders to better understand Beyond Budgeting at a practical level, to describe their existing model, diagnose what is wrong with it and design a better one. The key idea in the book is that an organisation’s management model must be coherent, in other words be a good ‘fit’ both the nature of the environment in which it operates and the qualities of its people. Thus, its management processes (as defined by the Beyond Budgeting process principles) must be more adaptive when the environment is unpredictable and have a more devolved culture (as defined by the Beyond Budgeting leadership principles). The map itself is a simple grid upon which people can plot their Management Model and the book provides detailed guidance on how to do with with reference to typical practices and methods and how to help ensure coherence, in principle and in practice. It also describes typical ‘patterns’ to look out for, good and bad, and some real-life examples. In summary it will help people translate interest in Beyond Budgeting ideas into practical action and provides a methodology to help guide and coach companies through the transition.
Beyond Budgeting is the idea of making organizations perform better by changing their management model, including abolishing the traditional budgeting process. The model’s tested and proven leadership and management process recommendations makes organizations more adaptive and human, and helps making agile transformations successful. This book is written for decision makers within an enterprise. In nontechnical language it explains what Beyond Budgeting is, how it works, and why it improves performance through the use of actual cases where it has been implemented. It discusses what challenges will need to be overcome to make implementation succeed and provides the many benefits that can be realized once the organization has completed the implementation.
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