Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Demystifying Beyond Budgeting

1,440 views

Published on

My keynote at AgileNOIDA

Published in: Business

Demystifying Beyond Budgeting

  1. 1. Tathagat Varma ThoughtLeadership.in Pic: h7p://bbrt.org/wp-content/uploads/2014/11/BBI.jpg
  2. 2. 2014: Founded “Thought Leadership” 2015: Wrote “Agile Product Development” (2016): Thinking… ideaQng...wriQng Agile Cultures
  3. 3. 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
  4. 4. Old budgeQng model… Courtesy: Beyond BudgeQng
  5. 5. …in a new changing environment? Courtesy: Beyond BudgeQng
  6. 6. 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/
  7. 7. 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/
  8. 8. •  “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!
  9. 9. 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/
  10. 10. Ok, so Agile at teams level and this new thingy at Org level? CompaQble organizaQonal values Complementary to each other Decision-making by empiricism
  11. 11. 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

×