What are the Beyond Budgeting principles?


Publication: 2012-11-03


For the past 12 years we have been studying organizations that have abandoned command and control and looked at the common principles they have adopted. This model is derived from the ‘best of best practices’ of leading-edge organizations and consists of 12 principles that redefine the management model. The first six “leadership” principles provide a framework for the devolution of responsibility to front line teams thus enabling them to respond quickly to emerging events and making them accountable for continuously improving (internal and external) customer outcomes and relative performance. The second six “process” principles support a more adaptive set of performance management systems that enable front line teams to be more responsive to the competitive environment and to customer needs. These principles represent a holistic model (not a menu of options) but different organizations will place different emphases on different elements at different times.

What is the problem? Few managers enjoy radical change, so what are the compelling reasons why you should take Beyond Budgeting seriously? Bear in mind that we use the word ‘budgeting’ as an alternative term for ‘command and control’ management. Budgeting was designed to enable senior executives to command and control the organization from the corporate center. [For more information, see] What is the vison for change? We believe that by replacing the command and control model with a Beyond Budgeting alternative (that is, an Empowered and Adaptive Organization), leaders can, over time, overcome these problems. [For more information, see]


Name:Owen Ambur


Name:Beyond Budgeting Roundtable



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