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January 2007

Happy New Year to you. 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.

Caulkin points out that although everyone agrees that the present situation is unsatisfactory, organizations have been held back by the lack of an obvious alternative. If it’s the budget that holds the whole management edifice together, won’t the organization fall apart without it? The Business Intelligence report reaches the same conclusion as BBRT, the answer is no and the many Beyond Budgeting case studies show that by managing the organization in a different more adaptable and devolved way (i.e. in line with the Beyond Budgeting principles) has enabled them to break free of the fixed performance contract straightjacket and to move on to greater success. But as Caulkin concludes ‘most organizations still have to root out and destroy the hidden WMD at their heart. There will be more budget misery, more corporate scandals – in short more great leaps backward – until they do.’

Simon Caulkin’s full article can be found at: http://observer.guardian.co.uk/business/story/0,,1984313,00.html

The Business Intelligence report can be found at: http://www.business-intelligence.co.uk/reports/planning_and_budgeting/default.asp (price £895)

Why clarity of purpose and values is critical to devolution, innovation and speed

Much time and effort is spent producing mission, vision and values statements that are subsequently ignored. One of the reasons is that these statements are typically bland and meaningless. They don’t build any emotional commitment between employees and the firm. What’s required is a clearer understanding of the organization’s purpose and the (inviolate) values that it stands for. The latest BBRT INSIGHTS research paper looks at these issues and how leaders can use clarity of purpose and values as an important framework for empowering their people.

BBRT members can download the full paper from the BBRT Private Forum.

We have great pleasure in welcoming the following organizations as members of the BBRT:

• EADS
• openBC/Xing!
• Revelwood

March

• 6 March: BBRT DACH Inaugural meeting - contact Franz Röösli
• 6 March: BBRT PSIG (Public Sector Interest Group) meeting - contact Peter Bunce

April

• 11-12 April: 2nd Brazilian Beyond Budgeting Conference, "Reinventing the DNA of management"- contact Niels Pfläging
• 25 April: BBRT European Region Members' meeting - contact Peter Bunce

May

• 1-4 May: BBRT North America Region Members' meeting
• 1-4 May: BBRT North America 6th Annual Beyond Budgeting Conference

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