BBRT-member Maarit Laanti and Rami Sirkiä have recently prepared an interesting paper on Lean and Agile Financial Planning. This is based on their mutual experiences with financial controlling in software development projects at Nokia. We are grateful to Maarit and Rami for sharing their experiences and knowledge, and for making this research paper available to the Beyond Budgeting Institute and the members of BBRT. The paper is now available on the BBRT Members’ website.
Independent consultant Adrian Ryan, with input from Bjarte Bogsnes, explains how businesses can use planning and process management to drive integrated reporting. To read the full article click HERE
Bjarte Bogsnes holds the unique distinction of being the only person to have “blown up the budget” at more than one company: at his previous employer, Borealis and at his current one, Statoil, the Norwegian oil giant. Now he want to blow up the calendar too – calling it an arbitrary (and anachronistic) basis for forecasting. A dedicated champion of the Beyond Budgeting movement, Bjarte takes the concept of rolling forecasts one big step further, with dynamic budget forecasting. The full article was published in the Balanced Scorecard report and can be read by clicking HERE
A few months ago, past MIX M-Prize winner, Bjarte Bogsnes of Statoil and Beyond Budgeting Chairman developed a hack for the MIX entitled “The End of Performance Management (As We Know It)”. In this hack Bjarte suggested that the idea of managing performance was itself incompatible with the 21st Century notion of reinventing management. His conclusion was that performance management itself need to be reinvented and renamed for a new age. During October 2012, almost 70 people took part in a discussion about the future of performance management. The resulting report captures the results of their experience. The report can be read by clicking HERE.
This is very much thanks to a great effort by Steve Player, our partner in North America. To read the full article click HERE
On 30 May, Beyond Budgeting was represented at the Lean Kanban-conference in Bologna. Rikard Olsson, from BBI’s Swedish partner Ekan Management, held a very much appreciated introduction to the Beyond Budgeting ideas and why management innovation is crucial for companies that want to achieve sustained competitive advantage.
Early in May, Beyond Budgeting was well represented at the Lean Kanban North America conference in San Francisco. This event featured a full Beyond Budgeting track of speakers:
- Bjarte Bogsnes (our chairman) served as one of the keynote speaker for the entire conference.
- Steve Player served as the Beyond Budgeting track chairman
- Gretchen Stepke of HOLT CAT (BBRT Member) shared how they had eliminated budgets as part of their 2009 improvement efforts.
- Doug Kirkpatrick of Morningstar explained how they created a company that operates without any bosses. The Morningstar case has previously been featured at BBRT events both in the US and in Europe.
- Kevin Meyer cofounder of the Gemba Academy described how his team eliminated budgets as part of their lean management approach.
- Steve Adams of Kaiser Permanente (BBRT Member) described their improvements in cost transparency and measurement. These are helping streamline operations while enabling continued decentralized management.
Many large and mid-sized organizations struggle with taking Agile beyond IT largely because Agile doesn’t provide any guidance on governance structures. In a new article Michael Sahota, Bjarte Bogsnes, Jaana Nyfjord, Jorgen Hesselnerg and Almire Drugovic argue that the leadership and governance principles of Beyond Budgeting are an excellent complement to Agile’s team orientation because they are aligned around values and mindset (culture). Beyond Budgeting provides the organizational guidance needed to create an environment where Agile can thrive.
To read the full article click HERE
During the two last days, BBRT Members gathered in Brussels for the bi-annual European BBRT Meetings. On Wednesday, we held the Implementers’ Meeting which this time focused on Business Forecasting. Yesterday’s BBRT Meeting featured very interesting presentations from New Zealand-based Mainfreight and the north European diary giant Arla. Bjarte Bogsnes presented his views on individual bonuses and last but not least: the members’ meeting included a review of a very interesting research from the Norwegian bank sector. The study shows a strong negative correlation between long-term financial results and the use of traditional budgets. Meeting presentations and the research study are available for download by BBRT Members from the private BBRT Members’ Community website.
On 19 March we held an open Beyond Budgeting conference in Brussels together with CFO Magazine. Anders Olesen from Beyond Budgeting Institute introduced the audience to Beyond Budgeting, our network and ideas. Hereafter, two longstanding BBRT-Members Statoil and A.P. Moller – Maersk presented how they have benefited from adopting the Beyond Budgeting principles in their management models. In connection with this conference, the February version of CFO Magazine featured an interview with Beyond Budgeting Institute which can be read here.
Doug Kirkpatrick, author of Beyond Empowerment: The Age of the Self-Managed Organization, spoke about Beyond Empowerment and his experiences at Morning Star at the BBRT Members meeting in Oslo in March 2013 and at the BBRT North America Conference in June 2013. TED has recently released a fantastic video on YouTube in which Doug gives a succinct and powerful explanation of Beyond Empowerment.