Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
SlideShare a Scribd company logo

Demystifying Beyond Budgeting

•
•
Tathagat Varma
Tathagat Varma

Tathagat Varma founded Thought Leadership in 2014 and wrote "Agile Product Development" in 2015. He is now working on a book about Agile cultures. The document discusses criticisms of traditional budgeting models from business leaders and an approach called "Beyond Budgeting" which advocates empowering teams and focusing on goals and transparency over command and control structures. It provides definitions and 12 principles of the Beyond Budgeting model, and notes the model is compatible with Agile approaches at the team level.

1 of 26
Download to read offline
Tathagat Varma ThoughtLeadership.in Pic: h7p://bbrt.org/wp-content/uploads/2014/11/BBI.jpg
2014: Founded “Thought Leadership” 2015: Wrote “Agile Product Development” (2016): Thinking… ideaQng...wriQng Agile Cultures
Demystifying Beyond Budgeting
Demystifying Beyond Budgeting
Are “Budgets” the culprit? The budget is a tool of repression rather than innovaQon – Bob Lutz, Ex-CEO, Chrysler BudgeQng is an unnecessary evil – Dr. Jan Wallander, Hon President, Svenska Handelsbanken The budget is the bane of corporate America – Jack Welch, Ex-CEO, GE Courtesy: Beyond BudgeQng
Old budgeQng model… Courtesy: Beyond BudgeQng
…in a new changing environment? Courtesy: Beyond BudgeQng
BudgeQng? “The word ‘budgeQng’ is not used in its narrow sense of planning and control, but as a generic term for the tradi/onal command and control management model (with the annual budget process at its core). In this context it describes both a management culture and a performance management system.” h7p://bbrt.org/about/what-is-beyond-budgeQng/
Beyond BudgeQng? •  Beyond BudgeQng’ means beyond command-and- control toward a management model that is more empowered and adap/ve. •  Beyond BudgeQng is about rethinking how we manage organizaQons in a post-industrial world where innovaQve management models represent the only sustainable compeQQve advantage. It is also about releasing people from the burdens of sQfling bureaucracy and suffocaQng control systems, trus/ng them with informaQon and giving them /me to think, reflect, share, learn and improve. h7p://bbrt.org/about/what-is-beyond-budgeQng/
•  “Beyond BudgeGng… is a posiGve idea that uses the abandonment of budgeGng as a trigger for improving the enGre management control process.” •  It’s a model, not a tool!
12 Principles (2011) Leadership Governance and Transparency Values Governance Transparency Accountable Teams Teams Trust Accountability Process Goals and Rewards Goals Rewards Planning and Controls Planning CoordinaQon Resources Controls h7p://bbrt.org/about/the-beyond-budgeQng-principles/
Demystifying Beyond Budgeting
Demystifying Beyond Budgeting
Demystifying Beyond Budgeting
Demystifying Beyond Budgeting
Demystifying Beyond Budgeting
Demystifying Beyond Budgeting
Demystifying Beyond Budgeting
Demystifying Beyond Budgeting
Demystifying Beyond Budgeting
Demystifying Beyond Budgeting
Demystifying Beyond Budgeting
Demystifying Beyond Budgeting
Demystifying Beyond Budgeting
Ok, so Agile at teams level and this new thingy at Org level? CompaQble organizaQonal values Complementary to each other Decision-making by empiricism
References •  Who Needs Budgets? – Jeremy Hope and Robin Fraser, h7ps://hbr.org/2003/02/who-needs-budgets, •  Beyond BudgeQng: A Proven Governance System CompaQble with Agile Culture, h7p://www.agilealliance.org/files/1514/0363/7286/ BeyondBudgeQngAgileWhitePaper_2014.pdf •  Case Report: Handelsbanken: Consistency at its best •  Taking reality seriously – towards a more self- regulaQng model at Statoil, h7p://www.managementexchange.com/story/taking- reality-seriously-towards-more-self-regulaQng- management-model-statoil

More Related Content

Demystifying Beyond Budgeting