Earlier this week, BBRT chairman Bjarte Bogsnes, wrote a great article which was published in Norway’s main business newspaper. The occasion was the annual celebration of the country’s fastest-growing companies; the so-called gazelle companies.
In the article, Bjarte highlights the desire of these companies to continue their growth and development. As small companies grow they tend to be inspired by how larger organisations are managed; they copy their systems and processes which includes an impressive and spectacular list: strategy development, business planning, budgeting, risk management, KPI systems, performance management processes, rewards systems, etc.
All of these systems and processes are all there for the right reasons: to improve the companies’ performance. However, experience shows that they very often have the opposite effect: they turn the once-agile companies into slow, rigid and bureaucratic organisations… and sometimes even into sad places to work.
The good news is that it doesn’t have to be like this. It is stated nowhere that companies must adopt all the bad habits of larger ones; and this is where Beyond Budgeting provides an alternative that enables fast-growing companies to maintain their agility and employee engagement leading that leads them to further performance improvement.