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How to succeed in today’s

fast changing economy

These are the lessons learned:

• The solution is NOT better planning and budgeting

Organizations have tried long and hard to improve their performance management processes. They have experimented with a mix of stretch targets, financial incentives, rolling forecasts, potentially valuable decision support tools, greater use of technology, and in some cases empowerment. These have mostly been less effective than their users had expected because the problem requires a more fundamental solution.

• The root cause of the problem is the ‘Fixed Performance Contract’
• This contract is rooted in the ‘Command and Control’ model
• ‘Beyond Budgeting’ is an alternative management model
• Three steps you can take to evaluate your case for change

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