some approaches on implementation of beyond budgeting

[Fazz Rahman]

folks

i've been thinking on the best approach in the implementation of beyond budgeting in our organisation.

the implementation guide talks about the 5 themes. however, i have a feeling that we need to have clarity on the 12 principles of beyond budgeting within the organisation. so my thinking right now is to spend time with the implementation team in going through the 12 principles one by one.

any thoughts?

fazz






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[Fazlur Rahman Zainuddin]

hi folks

 

my team had a discussion this morning. for our organisation, the main concerns with regards to beyond budgeting was in relation to 3 of the 12 principles: Targets, Rewards and Controls.

 

the biggest concern was on controls. many have the perception that no budgets would mean total spending anarchy.

 

hence, i spent a bit of time to allay those concerns. budgets are one form of control. and beyond budgeting proposes controls based on continuous relative improvements. relativity in some circumstances can be defined as peer benchmarks (internal and external).

 

the key is to benchmark performance regularly. given the transparency of the benchmarks, managers will need to "behave" to ensure that they do not sink so far down the benchmarking ranks.

 

any thoughts on this?

 

fazz

 

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From: beyondb...@googlegroups.com [mailto:beyondb...@googlegroups.com] On Behalf Of Fazz Rahman
Sent: Wednesday, 24 June 2009 10:08 PM
To: beyondb...@googlegroups.com
Subject: [beyondbudgeting] some approaches on implementation of beyond budgeting

[Fazz Rahman]

hi folks

another concern that the team raised to me is the readiness of the people to assume the empowerment expected of them. many feel that we should not go too far down the route of the small accountable teams. instead the teams needs to be fewer and bigger in order to ensure that the right & capable people are able to head these value centre teams and discharge their accountabilities appropriately.

any thoughts in relation to interim empowerment levels?

fazz