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Demystifying Beyond Budgeting


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My keynote at AgileNOIDA

Published in: Business

Demystifying Beyond Budgeting

  1. 1. Tathagat Varma Pic: h7p://
  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://
  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://
  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://
  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://, •  Beyond BudgeQng: A Proven Governance System CompaQble with Agile Culture, h7p:// BeyondBudgeQngAgileWhitePaper_2014.pdf •  Case Report: Handelsbanken: Consistency at its best •  Taking reality seriously – towards a more self- regulaQng model at Statoil, h7p:// reality-seriously-towards-more-self-regulaQng- management-model-statoil