Implementing Beyond Budgeting : Unlocking the Performance Potential

by Bogsnes, Bjarte

• ISBN13: 9780470405161
• ISBN10: 0470405163
• Format: Hardcover
• Copyright: 2008-12-03
• Publisher: Wiley

Summary

Written by Bjarte Bogsnes, Beyond Budgeting pioneer, Implementing Beyond Budgeting reveals best practices from actual cases where the author headed up implementation of Beyond Budgeting in large global companies. Beginning with a Foreword by Robert Kaplan, cofounder of the Balanced Scorecard, this book reveals how your organization can maximize a performance climate with teams committed to a common purpose, shared rewards, and sustained value creation. This innovative book lucidly presents how every organization can release the ambition and energy of its people who were previously slaves to the budgeting process.

Author Biography

Bjarte Bogsnes has a long international career in the oil business, both in finance and HR. As group controller for the petrochemicals company Borealis, he headed the abolishment of budgeting in this company in the mid-1990s and has been advocating the Beyond Budgeting principles ever since. He is now heading up StatoilHydro's Beyond Budgeting project. Bjarte is also Chairman of Beyond Budgeting Round Table Europe and is a popular business speaker internationally.

Table of Contents

Foreword	p. ix
Introduction	p. xi
Acknowledgments	p. xxiii
Problems with Traditional Management	p. 1
Introduction	p. 1
Which Way in a New Business Environment?	p. 3
The Trust Problem	p. 8
The Cost Management Problem	p. 14
The Target-Setting and Evaluation Problem	p. 22
The Bonus Problem	p. 28
The Rhythm Problem	p. 41
The Quality Problem	p. 46
The Efficiency Problem	p. 48
Beyond Budgeting	p. 53
Beyond Budgeting Round Table	p. 53
The Beyond Budgeting Concept	p. 54
The Handelsbanken Case	p. 56
The Borealis Case	p. 63
Introduction	p. 63
Creation of Borealis	p. 64
The Journey Begins	p. 65
The Borealis Model	p. 71
Implementation Experiences and Lessons Learned	p. 88
Borealis Today	p. 92
The Statoil Case	p. 97
Introduction	p. 97
Creating the Foundation	p. 99
Starting Out	p. 105
The Statoil Model	p. 109
Scorecard Pitfalls	p. 154
Joint Venture Budgets	p. 168
What Is Next?	p. 169
How Are We Doing?	p. 187
Making the Change: Implementation Advice	p. 191
Creating the Case for Change	p. 191
Handling Resistance	p. 198
Design to 80% and Jump	p. 200
Involve Human Resources	p. 201
A Pull-Based and Company-Owned Implementation	p. 203
One War but a Thousand Battles	p. 205
Do Not Become a Fundamentalist	p. 206
Closing Remarks	p. 209
Index	p. 213
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