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Implementing Beyond Budgeting

3 ideas

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  1. Fix the system, not the people

    Bad behaviour in organisations comes mostly from the management system people work inside, not from flaws in the people themselves. Change the rules, measures and processes, and behaviour changes with them. Trying to correct individuals while the system stays the same treats the symptom.

  2. Dropping budgets alone isn't enough

    Getting rid of the detailed annual budget is necessary, but it does not transform an organisation by itself. Targets, forecasts, performance reviews, bonuses and leadership habits all rest on the same command-and-control thinking. Each of them has to change too, so the whole model fits together.

  3. Individual bonuses replace real management

    Paying individuals a bonus for hitting targets is a shortcut that lets managers skip the harder work of leading, judging and developing people. The author calls it managerial laziness. Shared rewards tied to a common purpose align people better than personal payouts.

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