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More About This Title Implementing Beyond Budgeting: Unlocking the Performance Potential, 2nd Edition
- English
English
BJARTE BOGSNES has had a long international career, both in Finance and HR. He has been advocating Beyond Budgeting for more than twenty years and led its implementation at two large European companies, Statoil and Borealis. Bjarte is the chairman of Beyond Budgeting Roundtable (BBRT) and is a popular international business speaker. He is the winner of a Harvard Business Review/McKinsey Management Innovation award.
- English
English
Foreword xi
Acknowledgments xiii
About the Author xv
Introduction xvii
CHAPTER 1 Problems with Traditional Management 1
Introduction 1
Which Way in a New Business Environment? 4
The Trust and Transparency Problem 7
The Cost Management Problem 14
The Control Problem 22
The Target-Setting Problem 26
The Performance Evaluation Problem 30
The Bonus Problem 34
The Rhythm Problem 45
The Quality Problem 49
The Efficiency Problem 52
CHAPTER 2 Beyond Budgeting 55
The Philosophy 55
Beyond Budgeting Roundtable 65
The Beyond Budgeting Principles 69
Handelsbanken—the Pioneer 74
Miles—a Master of Servant Leadership 80
The Reitan Group—Values at the Core 84
CHAPTER 3 The Borealis Case 91
Introduction 91
Creation of Borealis 92
The Journey Begins 94
The Borealis Model 99
Implementation Experiences and Lessons Learned 115
Borealis Today 119
CHAPTER 4 The Statoil Case 123
Introduction 123
Creating the Foundation 126
Starting Out 130
The Statoil Model 134
A Dynamic Ambition to Action 190
What Could Be Next? 199
The Beyond Budgeting Research Program 210
How Are We Doing? 212
A New Start for Statoil? 217
CHAPTER 5 Beyond Budgeting and Agile 221
CHAPTER 6 Making the Change: Implementation Advice 229
Create the Case for Change 232
Handle Resistance 238
Design to 80 Percent and Jump 240
Keep the Cost Focus 241
Don’t Start with Rolling Forecasting Only 243
Involve Human Resources and Agile IT 244
You Can’t Get Rid of Command and Control through Command and Control 246
Do Not Become a Fundamentalist 249
Balanced Scorecard Pitfalls 250
Revolution or Evolution? 260
Closing Remarks 263
Index 265
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English
“Budgeting, which lies at the heart of management, is typically backward-looking, inflexible, politicized, and overly conservative — in other words, it’s a drag on organizational vitality. But in this provocative book, Bjarte Bogsnes shows you how to radically retool the budgeting process in your organization. Based on his experience in large and complex organizations, he takes you through a step-by-step process for transforming the way your organization is managed. This is essential reading if you want to build an organization that is fit for the future.”
—Professor Gary Hamel, London Business School
“This book is about how to create the right conditions to liberate people from traditional management practices, which organizations build as they grow, but which usually lead to reduced agility, employee disengagement, and ultimately decline. Since his 2009 book, Bjarte has journeyed a lot further beyond budgeting, gaining substantial new insights from practical experience, told in this edition as ever with great readability, authenticity, and enthusiasm.”
— Robin Fraser, co-founder of the Beyond Budgeting Roundtable; co-author with the late Jeremy Hope of Beyond Budgeting
“While it is common to hear managers complain about budgeting activities, too few are aware that the problems with budget management are more insidious. Budget management is a major cause of sub-optimisation; in simple terms, it makes performance worse. As with many human inventions, it solved problems of its time, but as time has moved on the problems and opportunities have changed. This book charts the development of better methods, balancing purpose and practice; improving the effectiveness of decision making; and, hence, organisation performance.”
—John Seddon, Vanguard
Praise for the First Edition
“At last, Bjarte Bogsnes has made his experience and enthusiasm for Beyond Budgeting available for a wider audience with this remarkable book. I have appreciated his engagement in these important management issues for many years, and his knowledge and leadership have been critical in the transformation of our organization.”
—Eldar Sætre, CFO (now CEO), Statoil
“This is an excellent book for those who want to grapple with the difficult task of radically changing conventional ways of running a company to more effective ways of doing it and ways more in accordance with human nature.”
—Jan Wallander, Honorary Chairman of Handelsbanken