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TathagatVarmaThoughtLeadership.in
Pic:h7p://bbrt.org/wp-content/uploads/2014/11/BBI.jpg
2014:Founded“Thought
Leadership”
2015:Wrote“AgileProduct
Development”
(2016):Thinking…
ideaQng...wriQngAgileCultures
Are“Budgets”theculprit?
ThebudgetisatoolofrepressionratherthaninnovaQon–BobLutz,Ex-CEO,Chrysler
BudgeQngisanunnecessaryevil–Dr.JanWallander,HonPresident,SvenskaHandelsbanken
ThebudgetisthebaneofcorporateAmerica–JackWelch,Ex-CEO,GE
Courtesy:BeyondBudgeQng
OldbudgeQngmodel…
Courtesy:BeyondBudgeQng
…inanewchangingenvironment?
Courtesy:BeyondBudgeQng
BudgeQng?
“Theword‘budgeQng’isnotusedinitsnarrowsenseofplanningandcontrol,butasagenerictermforthetradi/onalcommandandcontrolmanagementmodel(withtheannualbudgetprocessatitscore).Inthiscontextitdescribesbothamanagementcultureandaperformancemanagementsystem.”
h7p://bbrt.org/about/what-is-beyond-budgeQng/
BeyondBudgeQng?
• BeyondBudgeQng’meansbeyondcommand-and-controltowardamanagementmodelthatismoreempoweredandadap/ve.
• BeyondBudgeQngisaboutrethinkinghowwemanageorganizaQonsinapost-industrialworldwhereinnovaQvemanagementmodelsrepresenttheonlysustainablecompeQQveadvantage.ItisalsoaboutreleasingpeoplefromtheburdensofsQflingbureaucracyandsuffocaQngcontrolsystems,trus/ngthemwithinformaQonandgivingthem/metothink,reflect,share,learnandimprove.
h7p://bbrt.org/about/what-is-beyond-budgeQng/
• “BeyondBudgeGng…isaposiGveideathatusestheabandonmentofbudgeGngasatriggerforimprovingtheenGremanagementcontrolprocess.”
• It’samodel,notatool!
12Principles(2011)
Leadership
Governanceand
Transparency
Values Governance Transparency
AccountableTeams
Teams Trust Accountability
Process
Goalsand
Rewards
Goals Rewards
PlanningandControls
Planning CoordinaQon Resources Controls
h7p://bbrt.org/about/the-beyond-budgeQng-principles/
Ok,soAgileatteamslevelandthisnewthingyatOrglevel?
CompaQbleorganizaQonalvalues
Complementarytoeachother
Decision-makingbyempiricism
References• WhoNeedsBudgets?–JeremyHopeandRobinFraser,h7ps://hbr.org/2003/02/who-needs-budgets,
• BeyondBudgeQng:AProvenGovernanceSystemCompaQblewithAgileCulture,h7p://www.agilealliance.org/files/1514/0363/7286/BeyondBudgeQngAgileWhitePaper_2014.pdf
• CaseReport:Handelsbanken:Consistencyatitsbest• Takingrealityseriously–towardsamoreself-regulaQngmodelatStatoil,h7p://www.managementexchange.com/story/taking-reality-seriously-towards-more-self-regulaQng-management-model-statoil