Implementing Beyond Budgeting, 2nd Edition

Book Description

The future of management is here!

Traditional management was invented for very different times and is today in serious trouble. The level of volatility, uncertainty, complexity and ambiguity in business environments is record high. People’s expectations towards their employers and leaders have also radically changed. A number of organizations are exploring management innovation that can help them not just coping but thriving and out-performing in these new and different realities. Beyond Budgeting may be the most important new idea out there addressing these radical changes, due to its broad scope and coherent approach. Abolishing the traditional, detailed annual budget is necessary, but not sufficient. Organizations on the journey are questioning their old leadership beliefs and are tearing up their old command-and-control management models, with “agile” and “human” as the foundation for a new start.

Implementing Beyond Budgeting is both a theoretical introduction and a practical guide to bringing such a more empowered and adaptive management model to life. Drawing on the author’s twenty years of Beyond Budgeting experience, this book not only demonstrates the serious problems with traditional management through numerous practical examples. It also follows several companies on their Beyond Budgeting journey, including Scandinavia’s largest company Statoil where the author has been heading up implementation since 2005. You'll get a first-hand glimpse at the reality of transitioning a large multinational company, and gain a real-world perspective on what successful implementation entails.

This new second edition has been significantly revised and expanded. It covers the amazing development of the Beyond Budgeting movement and how the Statoil implementation journey has continued since the first edition of this book was published in 2009, sustaining major events like for instance the 2015 oil price crash. A new chapter on “Beyond Budgeting and Agile” has also been added. New implementation experiences, great new case stories, new management innovation examples and management metaphors (traffic controls!) are introduced, as well as the author’s latest reflections on a range of management issues including target setting, forecasting, performance evaluation and incentives.

Table of Contents

  1. Title Page
  2. Copyright
  3. Dedication
  4. Foreword
  5. Acknowledgments
  6. About the Author
  7. Introduction
  8. Chapter 1: Problems with Traditional Management
    1. Introduction
    2. Which Way in a New Business Environment?
    3. The Trust and Transparency Problem
    4. The Cost Management Problem
    5. The Control Problem
    6. The Target-Setting Problem
    7. The Performance Evaluation Problem
    8. The Bonus Problem
    9. The Rhythm Problem
    10. The Quality Problem
    11. The Efficiency Problem
  9. Chapter 2: Beyond Budgeting
    1. The Philosophy
    2. Beyond Budgeting Roundtable
    3. The Beyond Budgeting Principles
    4. Handelsbanken—the Pioneer
    5. Miles—a Master of Servant Leadership
    6. The Reitan Group—Values at the Core
  10. Chapter 3: The Borealis Case
    1. Introduction
    2. Creation of Borealis
    3. The Journey Begins
    4. The Borealis Model
    5. Implementation Experiences and Lessons Learned
    6. Borealis Today
  11. Chapter 4: The Statoil Case
    1. Introduction
    2. Creating the Foundation
    3. Starting Out
    4. The Statoil Model
    5. A Dynamic Ambition to Action
    6. What Could Be Next?
    7. The Beyond Budgeting Research Program
    8. How Are We Doing?
    9. A New Start for Statoil?
  12. Chapter 5: Beyond Budgeting and Agile
  13. Chapter 6: Making the Change: Implementation Advice
    1. Create the Case for Change
    2. Handle Resistance
    3. Design to 80 Percent and Jump
    4. Keep the Cost Focus
    5. Don't Start with Rolling Forecasting Only
    6. Involve Human Resources and Agile IT
    7. You Can't Get Rid of Command and Control through Command and Control
    8. Do Not Become a Fundamentalist
    9. Balanced Scorecard Pitfalls
    10. Revolution or Evolution?
  14. Closing Remarks
  15. Index
  16. End User License Agreement

Product Information

  • Title: Implementing Beyond Budgeting, 2nd Edition
  • Author(s): Bjarte Bogsnes, Robert S. Kaplan
  • Release date: July 2016
  • Publisher(s): Wiley
  • ISBN: 9781119152477