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Welcome to the BBRT global newsletter, which is designed to keep you informed of developments in Beyond Budgeting and the BBRT. For further information visit our web site at www.bbrt.org.
How to support long-term growth by neutralizing the toxic effects of executive incentives
Abstract: Most large organizations offer their senior executives compensation packages that include some element of ‘pay-for-performance’. The underlying assumption is that these align the interests of their executives with those of the shareholders. But the evidence that this works is tenuous at best. This paper examines this evidence and suggests a number of ways that Boards can design schemes that reward longer-term performance while minimizing the toxic effects of these schemes.
How to spot risky management practices
Abstract: The business world has lost much respect and credibility following a wave of corporate governance scandals over the past five years or so. The reaction of governments predictably has been to tighten up regulations and extend punishments for serious miscreants. But does this get to the root of the problem? This is unlikely as many of these problems are endemic to the performance management systems and accepted practices (such as aggressive targets and incentives) that are in place in most organizations today. This paper explores these issues and offers some thoughts as to what leaders should do about them.
The BBRT INSIGHTS research papers are delivered to BBRT members on a regular basis. BBRT members can download the full paper from the BBRT Private Forum. Join the BBRT to get access to the full papers and all the past BBRT research material.
The 6th Annual North American Beyond Budgeting conference attracted an audience of over 150 people. They heard excellent presentations from Bob Paladino, Christophe Couturier (Millipore), Mark Graham Brown, Steve Morlidge (ex Unilever), Michael Hugos (Agilinks), Juan Castro (MD Anderson Cancer Center), Amand Sanwal (American Express), Mark Velicore (Puget Sound Energy), Larry Van Kuran (Kaiser Permanente), Ben Lamorte (Alight Planning), John Power (Longview Solutions), Graham Monroe (Affirmative Insurance) and Keith Spirget, Charming Shoppes. The full agenda can be viewed here.
For further information on BBRT North America contact Steve Player.
BBRT European Members' Meeting, 25 April
An excellent and highly rated BBRT European Members' meeting was held in London on 25 April. 34 attendees heard Magnus Uggla from Handelsbanken describe the Handelsbanken management model. Bjarte Bosgnes from Statoil gave a progress report on their journey towards Beyond Budgeting and Peter Bunce described how Toyota's DNA helps them address their critical success factors. Steve Morlidge described some of the issues in making rolling forecasts an effective tool for 'adaptive decision-making' and introduced some themes for a possible BBRT Special Interest Group on Forecasting. The meeting was very interactive with much discussion helping attendees to 'get behind' the presentations and really understand what is going on.
The next BBRT European Members' meeting will be held on 17 October 2007. Contact Peter Bunce for more details about the meeting and BBRT membership
Reinventing the DNA of Management, 11-12 April, Sao Paulo, Brazil
Recently BBRT South America held a very successful conference in Sao Paulo on the theme of "Reinventing the DNA of Management". Speakers from Handelsbanken, Google, Egon Zehnder International and Toyota Motor Europe described their organization's management model and how it had become an essential part of their "DNA " - the way they operate and the basis for their success. For further information on BBRT South America contact Niels Pflaeging.
We have great pleasure in welcoming the following organization as a member of the BBRT:
June
July
October
BBRT is an independent international shared learning network for all organizations that seek to improve their performance management through sharing information, past successes and implementation experiences. Our purpose is to help organizations introduce a new management model for the innovation age.
For more information, please visit www.bbrt.org, email Peter Bunce, or call +44 1590 679803
BBRT, 745 Ampress Park, Lymington, Hampshire SO41 8LW, UK Tel: +44 1590 679803 Fax: +44 870 705 8799 Email: info@bbrt.org
(c) BBRT 2007 - All rights reserved
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