How to Go Beyond Budgeting
Abstract: How good is your performance management model? Does it provide your senior executives with the early warning signals they need to respond rapidly to changing events or leave them facing angry shareholders who demand to know why you didn’t see the problems coming? Does it encourage managers to strive for maximum potential performance or reward them for being highly skilled at negotiating ‘comfortable’ targets and playing the political game? Does it ensure that all resources follow the best current opportunities and add value for customers or encourage ‘sandbagging’ and a ‘spend it or lose it’ mentality? Does it encourage people to bring their creativity and passion to work every day or just demand obedience to the plan? And does it add value to all its users (think of the budgeting process), or just waste vast amounts of their time? As this paper explains Beyond Budgeting is a radically different management model that enables a more adaptive, lean and ethical organization.