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How to succeed in today’s

fast changing economy

In most organizations, planning, budgeting and performance management are sources of competitive disadvantage. Recent surveys have revealed the extent of the problems:

• 75% said their processes can’t cope with unpredictable change
• 90% said they take too long and add too little value
• 85% said they don’t focus enough on key strategic issues
• 75% said they cause dysfunctional, even unethical behaviour
• 80% said they conflict with tools, such as the Balanced Scorecard.

Some organizations have overcome these problems. They are now achieving superior performance relative to their peers. These are the lessons learned:

• The solution is NOT better planning and budgeting
• 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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