On 27 May, the first ever Beyond Budgeting conference was held in Reykjavik, Iceland. About 130 leaders from Iceland’s leading businesses attended the conference; this is a great sign of a very promising interest in Beyond Budgeting. Several Icelandic companies have already started their Beyond Budgeting journey, and based on the interest we see now, there is no doubt that many more will follow. The conference was very well organized by our recently appointed local partner: Beyond ehf. represented by Petur Arason and Axel Guðni Úlfarsson (pictured below).
Last year, we started to organize local workshops for our BBRT members. These events are coordinated by our local partners and have proven extremely popular.
In the beginning of May workshops were held in Denmark and in Norway. At both events, BBRT members shared valuable implementation experiences. We also discussed how to manage costs without traditional budgets and in Norway, the program included a great example of a large insurer that has successfully abandoned its bonus programs.
Last week, the local BBRT workshop took place in Sweden at Volvo Cars in Gothenburg. This too was a great day packed with great cases from Volvo Cars, Nors and Spotify.
You can also be a part of our local workshops. Become a member of the BBRT and learn how to break free from the annual performance trap.
In the beginning of April, BBRT chairman Bjarte Bogsnes and director Anders Olesen attended a number of meetings and workshops in Paris. All these events were about introducing the Beyond Budgeting principles and management model to French companies.
In total, Anders and Bjarte met with some 250-300 people, most of who represented some of the largest industrial and financial companies in France.
One of the events was a joint session with Schneider Electric that successfully implemented Beyond Budgeting more than 10 years ago.
We are very excited about this interest. We will follow this closely and do our best to support the initiatives taken in France. Moreover, as mentioned at the latest BBRT Members’ meeting in London last month: it is very likely that the next European BBRT meeting is held in France.
Last week the first Members’ Meeting in 2015 took place in London. The meeting was preceded by the Implementers’ Meeting facilitated by Steve Morlidge, former BBRT Chairman with more than 30 years of practical experience in designing and running performance management systems at Unilever. The meeting explored the subject “Targets and target setting” and provided advice to active implementers.
The BBRT Members included three main themes. Frederic Laloux revealed the key findings of his three years groundbreaking research presented in the book “Reinventing Organizations”. During his presentation, Frederic elaborated on some very interesting patterns pointing towards a new emerging organizational model leading to more purposeful and better performing organizations.
At the meeting some BBRT Members also shared their varied Beyond Budgeting experiences.
During the last three years Uno-X has created a number of significant changes to their management model and organization resulting in improved profitability, cost efficiency, customer satisfaction and overall competitiveness. Henrik Esberg, the CFO of Uno-X Automat explained in his presentation how they have benefited from applying the Reitan culture and the Beyond Budgeting principles – a great example of the unleashing of performance potential that can follow when an organization is given autonomy.
Furthermore, DNV GL shared their experiences with the implementation of Beyond Budgeting processes into a large global organization that has been around for a long time.
All presentations from the meeting will soon be available on the BBRT Members’ Community.
We are looking forward to welcoming you in October at the next BBRT Members’ Meeting.
Today Denmark’s largest business paper, Børsen, brought a great article about BBRT Member Arla. The article describes how Arla manages without budgets in order to move beyond command and control with the purpose of releasing their employees from the burdens of stifling bureaucracy and suffocating control systems, trusting them with information and giving them time to think, reflect, share, learn and improve.
You can read the article here. Please note that the article is in Danish.
The next local BBRT Members’ workshop in Denmark is hosted by Arla, who at this occasion will elaborate on their model for rolling forecasting.
In order to reach out to as many organisations as possible, we seek to build a global network of Beyond Budgeting Partners. The role of the partner is to promote the Beyond Budgeting Principles locally and organise local Beyond Budgeting events. In addition, the partner shall assist locally based organisations on their Beyond Budgeting journeys.
It is a great pleasure to inform you that we have entered into an agreement with Beyond ehf. to represent us in Iceland. Beyond ehf. is a newly established company owned by two of our old friends from the Beyond Budgeting network: Axel Guðni Úlfarsson (Össur) and Petúr Arason (Marel).
Their first major activity is an open conference taking place on 27 May in Reykjavik. Bjarte Bogsnes and Anders Olesen from the Beyond Budgeting Institute will attend the conference, which will also include an interesting presentation about the Maersk Group’s Beyond Budgeting journey.
This month, the ICAEW (Institute of Chartered Accountants in England and Wales) is publishing a Special Report on Budgeting. The report includes articles on different aspects of budgeting from various experts.
The Beyond Budgeting Institute is very happy to have contributed to the report with an article representing the Beyond Budgeting approach including case studies.
This article was first published in the special report “Budgeting”. The faculty helps accountants in business to perform at their best. For more information on the benefits of membership see icaew.com/fmjoin
We are very excited about the next European BBRT Members’ Meeting in London.
The meeting on 12 March will include very interesting insights into emerging organizational models that lead to more purposeful and better performing organizations.
In addition, BBRT Members will share their varied Beyond Budgeting experiences, including:
- How to implement new agile processes into a mature and global organization
- How to embed a leadership philosophy into the company’s DNA
- How to operate in the absence of targets, budgets and middle managers
The Members’ meeting is preceded by the Implementers’ Meeting on 11 March. The theme of this meeting is “Targets and target setting”.
Happy New Year!
We wish all our network and everyone else interested in Beyond Budgeting a Happy New Year.
Did you notice that Beyond Budgeting was recently quoted in Financial Times shortly before year-end? Our chairman, Bjarte Bogsnes, was interviewed by the Financial Times and we are very happy that this later led to a short article in FT.
BBRT member Velux is one of the strongest brands in the building industry due to their world famous roof windows and skylights. Velux has developed a new planning model which has improved transparency and their ability to act on demand changes globally.
The largest business paper in Denmark, Børsen, brought a great article about Velux and their new model. Here is a link to the article. Please, note that the article is in Danish.
The next local BBRT Members’ workshop in Denmark is hosted by Ulrich Gammelgaard from Velux, who at this occasion will present their new model.
The first local Swedish BBRT Members’ Meeting hosted by SKF
The first local Swedish BBRT Members’ Meeting was organized by Ekan Management on 10 December. The meeting attracted over 40 participants from more than 15 large and medium-size companies.
The meeting was very appreciated, where the host for the meeting, SKF, first invited to lunch and gave a guided tour through the history of SKF. After an introduction by Henrik Lange, CFO SKF, Dag Larsson and Rikard Olsson, Ekan Management, gave an introduction to Beyond Budgeting and the BBRT network in Sweden, Europe and the Global Network. Bjarte Bogsnes, VP Performance Management Development at Statoil, presented the Statoil journey and answered to questions on their experiences and recommendations.
Ekan Management, BBRT’s local Beyond Budgeting Institute representative in Sweden, will give the Swedish BBRT members the opportunity to attend the next local meeting on 19 May.
Workshop for over 100 managers in the public sector, 10 December
Knut Fahlén, Ekan Management, facilitated a workshop the theme “How can we manage easier and smarter”. The Beyond Budgeting principles concerning the process of planning and controls was presented for over 100 managers at a medium-sized municipal in Sweden.
Several questions was addressed, and especially the purpose and relevance of the Budget, as defined in The Swedish Local Government Act, when it comes to management and performance. Is the 31 December a relevant dead-line for all the different purposes, operations and activities in any municipal, or can we learn something from successful companies like Aviva, managing their services Beyond Budgeting?
Inspiration lecture for over 40 budgeting managers in the public sector, 11 December
At the Budgeting days, organized by KEF (The association for municipal finance professionals), Knut Fahlén at Ekan Management facilitated a half-day inspirational lecture about Beyond Budgeting. There are several indications, not only in the private sector but also in the public sector, concluding that the classical command and control management promoted by budgets are not working in the public sector today. Maybe for allocation of resources and tax-purposes, but not for managing the business they are in.
A common remark from finance people in the public sector is that the budget is regulated in The Swedish Local Government Act, or The Swedish Budget Act relevant for the parliament. The purposes of these laws, or equivalent in other countries, are however mainly to match income taxes against spending on a yearly basis, not how to manage the variety of business concerned. The message to the audience focused on the need to separate the budgeting process. When forecasting, target setting and resource allocation are made in one process instead of separated, there will be nothing to manage against. It’s the gap that’s interesting.
Bjarte Bogsnes, BBRT chairman, was among many great speakers at the Management Innovation eXchange conference (the MIX) in New York in November.
In connection with his presentation, Bjarte has contributed with some very interesting viewpoints explaining that many leaders live under the illusion that performance can and should be measured in simple, mechanical and objective ways. According to Bjarte, that is not possible. There will always be subjectivity, whether we like it or not.
You can read the article here.
Henry Stewart, one of the speakers at our last BBRT Members’ Meeting and the open conference in London, was recently featured in the Financial Times (Nov 23rd). In the article, Henry Stewart elaborates on the proven link between happiness and productivity and why the creation of employee happiness should be on the managers to-do list. However, he also admits that most companies are not ready for such a radical culture change.
Happy’s business philosophy and the Beyond Budgeting principles complement each other very well. According to Henry: “People work best when they feel good about themselves. So the main principle of management should be making people feel good“. Our mission at BBRT is to help organisations achieve sustained, superior performance, and an important prerequisite is employee engagement.
Please, click here to read the article.
Ekan Management, our local Beyond Budgeting Institute representative in Sweden, is organising a workshop on 10 December in Göteborg, Sweden. Non-members are able to participate free of charge in order to learn more about the network and the Beyond Budgeting principles.
For more information and registration, please click here.
Miles, a Norwegian IT consulting firm, is a great example of how organisations can break free from the annual budget trap once and for all and still be highly successful.
Growth targets, revenue and budgets are all unfamiliar financial concepts at Miles. Instead their vision is to create and develop a professional and social environment that attracts the most skilled and talented employees in their industry. The formula for success originates from their recruitment process and working environment philosophy based on “freedom with responsibility”.
If you are interested in learning more about Miles, click here. Please, note that the article is in Norwegian.
This week the Management Innovation eXchange (the MIX) held a great conference in New York. Bjarte Bogsnes, our chairman, was among the many great speakers that also included Gary Hamel and Vineet Nayar who kicked it all off on Tuesday afternoon.
If you are interested in following the latest and greatest ideas about leadership and management, then we encourage you to also have a look at the MIX network – see http://www.managementexchange.com/. Headed by Gary Hamel, they are amazing at collecting, sharing and nurturing great and very often thought provoking management ideas in the pursuit of management models that make organizations fit for the future – and fit for human beings.
In the Beyond Budgeting Institute we do our best to help our members learn from these – and other – sources, and to translate the ideas into new practical processes that can improve performance in a sustainable way. We are very happy to cooperate with and contribute to the MIX – please, click here for an example.
Below are, but a few of the many, insights from the conference:
- A mere 16% of the world’s workforce comes to work engaged (according to the latest Gallup – see: http://www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspx). This is even less than the 24% that show up actively disengaged. These numbers have not changed significantly in the latest decades. Gary Hamel referred very appropriately to this as the shame of management. This, however, represents a staggering improvement potential.
- It’s about improving the clock speed of the organization. In HCL Technologies they developed a mission that was compelling and relevant to all: ‘Create a company that you are proud to work for.’ Create trust by being open and transparent… leaders must learn to say ‘I don’t know’ and to understand that great innovative ideas are not created at HQ, says Vineet Nayar, former CEO of HCL Technologies.
- By letting go of power internally, the CEO actually gets much better control because it becomes embedded into the organization. Frederick Laloux, who recently wrote ‘Reinventing organizations’, sees a very interesting (and comforting) pattern of new and similar management models evolving; models that are based on self-management and that are highly efficient.
- We will see a management revolution when CEO’s start connecting the dots (Vineet Nayar)
- A truly inspiring example of a significant movement that was born out of an initiative from the fringe, and which lifted performance significantly in a large hierarchy, was provided by Helen Bevan and Jackie Lynton from the National Health Service (the world’s fifth largest employer)
- Michele Zanini from the MIX team provided a spot-on analysis why a staggering 70% of change programs continue to fail.
- ‘Everyone can do whatever they want to, and everyone else has everything to do with that’, is one of the principles at Vagas. According to founder Mário Kaphan, it’s all about having shared experienced values which has lead his organization to abandon formal hierarchies and introduce a decision making process based on consensus. ‘Our model is not perfect and never will be; but we continue to develop and improve it all the time.’
- As always, Bjarte provided a very engaging presentation about the need to change both leadership principles as well as processes… to align reality with rhetoric (as Gary Hamel put it)… as this is all too often missing.
A great thanks to Polly, Gary, Michele and their crew for hosting this great event!
Denmark’s largest company, A.P. Moller – Maersk, has recently posted an impressive profit of US$1.2b in Q3 2014. This impressive figure is a result of “a forward-looking strategy, intelligent capital allocation and an improved performance management process,” says CFO Trond Westlie, who has offered an insight into his rules for success – rules that are consistent with the Beyond Budgeting principles. A.P. Moller – Maersk is also a member of the BBRT. To learn more, please click here.
For a more thorough interview with Trond Westlie, please click here.
To read a short case story about A.P. Moller Maersk’s management and planning processes written by Anders Olesen, Director of Beyond Budgeting Institute, please click here.
Gary Hamel, one of the world’s most influential business thinkers, emphasises in his blog on the subject “How to rethink the architecture and the ideology of organizations” the importance of challenging our foundational beliefs in order to build organisations that are dramatically more capable than the ones we have today. However, despite our best intentions and efforts, we will in the future still struggle to:
- build organisations that are as nimble as change itself
- make innovation an instinctual and intrinsic capability
- inspire extraordinary contributions from our colleagues and employees
The big questions is how we start analysing the architecture and ideology of modern management in order to deal with the core incompetencies that have a bad influence on organisations.
If interested in exploring Gary Hamel’s blog and viewpoints further, please click here.
Last week the BBRT Members’ Meeting took place in London. 50 Members had two exciting and thought-provoking days taking point of departure in how to reach new levels of performance through engagement.
Ekan Management, our official Beyond Budgeting representative in Sweden, facilitated the Implementers’ Meeting on day one. The meeting raised many interesting viewpoints and exchange of experiences on the topic resource allocation.
On day two, in-depth examples on how new ways of management can create great workplaces was given. Among the speakers was John Timpson, the author of the book: ‘Upside Down Management’ and Chairman of Timpson – a retail service business with over 1300 outlets in UK and Ireland. During his presentation, John Timpson revealed his secret behind his unique management model and the formula for great customer service to the delight of the BBRT Members.
Vlatka Hlupic, Professor of Business and Management at Westminster Business School in London and author of the book ‘The Management Shift – How to Harness the Power of People and Transform Your Organization for Sustainable Success’, demonstrated in the second session HOW organisations can make The Management Shift to a new way of thinking and working. In her presentation, Vlatka Hlupic provided the delegates with comprehensive knowledge regarding her latest research explaining the ‘What’, the ‘Why’ and the ‘How’ of The Management Shift.
In the afternoon, BBRT Members were encouraged to share their thoughts and experiences in the field of Beyond Budgeting and how the principles has evolved over time – a session, which created many interesting and valuable debates and discussions.
Henry Stewart, founder and CEO of Happy Ltd. and author of ‘The Happy Manifesto’, rounded off the autumn’s Members’ Meeting. His business philosophy is based on that “People work best when the feel good about themselves meaning that the principle of management should be making people feel good”. In the presentation, Henry Stewart focused on explaining how to create great workplaces for people in order to reach their full potential. In 2011, Henry Stewart, was listed as one of the top 50 most influential business thinkers in the world by the ‘Guru Radar of the Thinkers’.
We are looking forward to welcoming you at our BBRT Members’ Meetings in 2015.
On 22 October, we held a great open conference about Beyond Budgeting in connection with the BBRT Members’ Meeting in London. The conference, which was organised in cooperation with Happy Ltd., was a great success.
During the day, the delegates gained valuable insight into the Beyond Budgeting management model through interesting case stories and viewpoints presented by leading practitioners from Statoil and Handelsbanken, as well as Julian Birkinshaw from London Business School.
Below, you can read more about the 10 big lessons learned from the conference in pursuit of enabling organisations to build lean, adaptive and ethical enterprises written by Adrian Trenholm from Happy Ltd.:
You have already lost control
The purpose of traditional management tools is to help senior managers gain control. However, do not be fooled. Between the unintended consequences of budgets and targets, and the dynamics of the market, you have already lost control.
The default is not neutral
Unintended consequences are everywhere… and dangerous. Budgeting leads people to game the system. We low ball our sales forecasts and inflate our cost estimates “just in case”. Static targets become irrelevant and disempowering. Traditional management tools do not have a neutral impact. They actively work against what we really want to achieve.
Work with human nature, not against it
It is human nature to want to do well. Handelbanken’s, for example, has branch staff make decisions. Time after time, staff prove worthy of that trust. To get rid of command and control, you start with belief that your staff can be trusted, because they really want to do well.
Set one clear goal
One clear inspiring goal works better than a hatful of KPIs. It is simple to understand and everyone can test their plans and actions against it. Multiple goals make it harder to focus and harder to decide the correct course of action. KPIs are useful measures of progress, but remember: they are Indicators, not the Truth – let measurement be your servant, not your master.
Make targets relative and directional
We can be smarter than SMART (Specific, Measurable, Assignable, Realistic, Time-related). Instead of deciding an arbitrary number and sticking to it, we can set relative goals such as “outperform the market in activity X” – then measure progress dynamically. The arbitrary number quickly loses meaning and becomes disempowering; the relative goal adapts to circumstances and stays meaningful.
How you achieve a result is as important as the result itself. Have the courage to say “no” to short-term opportunities, which are inconsistent with your values. Be like Handelsbanken, which places the highest value on customer relationships at the branch level. By staying true to that value, Handelsbanken sidestepped the sovereign debt crisis. Because Portugal cannot walk into a local branch, and you cannot have a cup of coffee with Greece.
Stop trying to steer behaviour
Mechanisms to steer behaviour – targets, bonuses and so on – short circuit people’s capacity for decision-making. Behaviours become skewed towards hitting arbitrary targets, instead of working towards true goals. Let the human desire to do well – and your shared values – govern behaviour.
Change process and management in tandem
Beyond Budgeting requires an almost simultaneous move from static to dynamic processes and from theory X to theory Y management. You cannot do one without the other.
Act with conviction
We have too much information and a deficit of attention – and we keep looking for more. We need to replace or at least augment data-driven decision-making with emotional conviction and decisive action. At Statoil, teams do not make plans; they set “Ambitions to Action.”
You do not need to go all in
Evolution is slower than revolution, but it is better than no change at all. The board member who says, “We need to keep doing budgets this way” can derail your revolution in an instant. Do not get into conflict. Keep making changes in both leadership and process until momentum makes change inevitable.
Please, click HERE if you are interested in watching some of the presentations online in order to learn more about the principles of Beyond Budgeting.
In the beginning of October, we held the first open conference about Beyond Budgeting in Southeast Asia ever. We hope that this is the beginning of a strong and vibrant Beyond Budgeting network in this region.
The conference included great examples of the Beyond Budgeting principles in action from great companies from all around the world: Kyocera (Japan), Mainfreight (New Zealand), Telekom Malaysia (Malaysia) and Statoil (Norway).
The conference followed great workshops at BBRT-member Tenaga Nasional Berhad, which is about to embark on their Beyond Budgeting journey.
We have launched a completely new website with several improved features, which better reflects our many activities.
The new website has a new login option for BBRT Members to ensure membership benefits when signing up for our events and conferences and downloading information etc.
Whether you are already a member or if you are visiting for the first time, please take a tour – we hope you will enjoy it.
We have just finalised a Research Paper about Aviva; UK’s largest insurer and one of Europe’s leading providers of life and general insurance with around 34 million customers.
The paper is based on the transformation of practices in Aviva’s call centres in order to meet customer needs rather than targets for calls answered and sales made. It provides an illustration of the way in which customer service can be transformed by adopting a more organic management model in line with the Beyond Budgeting principles with less reliance on procedures, standards, targets and incentives.
The Research Paper is available on the BBRT Members’ website.
The Research Paper is written by David Dugdale (Bristol University) and Rob Wilson (Aviva). The Beyond Budgeting Institute is very grateful for this contribution to our shared knowledge base.
Are you ready to unleash the real power of your people?
Sign up for an inspiring conference co-organized by the Beyond Budgeting Institute. The day is packed with real World case studies and thought-provoking, interactive sessions led by CEOs, business thinkers and pioneering practitioners of Beyond Budgeting. Speakers from London Business School, Handelsbanken UK, Happy Ltd., Statoil and from our Network are getting ready for a great day.
In just one day, you will learn everything you need to sweep away outdated command and control methods and begin your journey towards a leaner, more adaptive, more resilient organisation.
For more information and to sign up please follow the link:
The Management Innovation eXchange (MIX) is an open innovation project aimed at reinventing management for the 21st century. The MIX Mashup 2014, which takes place in New York on 18-20 November, is a gathering of the vanguard of management innovators with a dream: ORGANIZATIONS THAT ARE FIT FOR THE FUTURE—AND FIT FOR HUMAN BEINGS. If you think that this sounds very familiar, then it’s because we work closely together with this network – and we are fighting the exact same battle. Again this year, our chairman Bjarte Bogsnes is among the speakers. The other speakers represent the following inventive and successful organizations : TaylorMade-adidas Golf, the English National Health Service, Cemex, Vagas.com, Loomio and Atlassian.
For more information, click HERE
As part of our research efforts, and in order to increase the awareness about Beyond Budgeting, we reach out to and cooperate with universities, business schools, academics and other thought leaders.
A great example of such cooperation is with NHH Norwegian School of Economics, which has been an active member of BBRT for many years. We are extremely happy with this cooperation and the strong ties we have with many people at NHH. Most recently, Katarina Kaarbøe from NHH was awarded the David Solomons Prize by Management Accounting Research in recognition of the article: “From comfort to stretch zones: A field study of two multinational companies applying beyond budgeting ideas”; a paper she co-authored with Professor Anatoli Bourmistrov from University of Nordland.
NHH has conducted a very interesting study from the Norwegian banking sector which demonstrates a strong negative correlation between long-term financial results and the use of traditional budgets.
Another example of such cooperation is with Católica Porto Business School in Portugal that is now introducing Beyond Budgeting in their executive education.
We have just finalized a case report about BBRT member Uno-X Automat which is part of the Reitan Group, the fifth largest company in Norway. The vision of the Reitan Group is to become Scandinavia´s most value driven company. This is achieved by amplifying a culture that has the customer as the ultimate boss and a working environment where authority is delegated to employees who are their own decision makers. The case report is a great example of the unleashing of performance potential that can follow when an organization is given autonomy. The case story is available on the BBRT Members’ web site.
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.