Tathagat Varma founded Thought Leadership in 2014 and wrote "Agile Product Development" in 2015. He is now working on a book about Agile cultures. The document discusses criticisms of traditional budgeting models from business leaders and an approach called "Beyond Budgeting" which advocates empowering teams and focusing on goals and transparency over command and control structures. It provides definitions and 12 principles of the Beyond Budgeting model, and notes the model is compatible with Agile approaches at the team level.

1. Tathagat Varma
ThoughtLeadership.in
Pic: h7p://bbrt.org/wp-content/uploads/2014/11/BBI.jpg

2. 2014:
Founded “Thought
Leadership”
2015:
Wrote “Agile Product
Development”
(2016):
Thinking…
ideaQng...wriQng
Agile Cultures

5. 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

6. Old budgeQng model…
Courtesy: Beyond BudgeQng

7. …in a new changing environment?
Courtesy: Beyond BudgeQng

8. 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/

9. 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/

10. • “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!

11. 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/

25. Ok, so Agile at teams level and this
new thingy at Org level?
CompaQble organizaQonal values
Complementary to each other
Decision-making by empiricism

26. 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