Breaking Bad: Getting to Beyond Budgeting
Episode 58

Breaking Bad: Getting to Beyond Budgeting

Bjarte Bogsnes has worked with companies, from IKEA, H&M,Pernod Ricard, Volvo and Equinor (Scandinavia’s largest company). In today’s episode Bogsnes rails against the “misery” and “borderline unethical behavior” in traditional budgeting within companies, as he talks about the seachange happening in businesses. He talks to Paul Barnhurst as he publishes his new book, This Is Beyond Budgeting: A Guide to More Adaptive and Human Organizations (2023).

The episode covers

  • Definition of beyond budgeting as an antidote to “serious problems with traditional management”
  • How traditional budgeting gets “trust” and “predictability” wrong
  • Your answer to “Why are you budgeting?” shows the problems inherent in existing process
  • How budget process are “borderline unethical”
  • Equinor (Scandinavia’s case study) change
  • Making organizations more adaptive and human in the process of transformation
  • Don’t start with rolling forecasting
  • How a Vinyl collection of 3,5000 is a unique musical passion
  • How Beyond Budget “will happen” in the next decade

Watch on YouTube

Read the Full Transcript and Blog

Links

Bognes Advisory bogsnesadvisory.com

FT (case study of Ikea): CEOs forced to ditch decades of forecasting habits


Bjarte Bogsnes: This Is Beyond Budgeting: A Guide to More Adaptive and Human Organizations


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Follow?Paul Barnhurst?on LinkedIn


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Alberto Detomi

ACMA, CGMA, CSCA | Chartered Global Management Accountant | Strategic Finance Business Partner

1 年

I came to the realisation that the change of mindset is hardly ever brought from within big companies and it requires an outsider. To introduce something that will be perceived as disruptive requires courage as the whole idea of renouncing to the "budget" or de-emphasizing its role as a management tool, in the vast majority of cases, will be met with fear and, in my experience, with "hostility" so endangering your reputation in the organisation. Similarly to a system dynamic, when something is introduced that creates such a big shock to the system, the system itself will immediately seek to expel the perturbation and return to balance. The adage "it is better the devil you know" is somewhat true but it is also true that there can be vested interests to preserve the budget and its gaming/politics where certain management thrive. I want to thank you for fostering these very topics: to bring about the necessary change we need more knowledge-sharing and a sense of community.

Sam Carter

CEO I Carter & Company International Business Advisory Firm

1 年

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CHESTER SWANSON SR.

Realtor Associate @ Next Trend Realty LLC | HAR REALTOR, IRS Tax Preparer

1 年

Well said.

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