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July/August 2011

Thank you for your interest in BBRT. 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 global web site at www.bbrt.org.

What's in the Newsletter

• BBRT Upcoming Events
• New Book – “The Leader’s Dilemma: How to build an empowered and adaptive organization without losing control”
• BBRT New Members
• BBRT Research News
  • Recent research papers sent to BBRT members
  • Wisdom of crowds to empower Beyond Budgeting
    

24-25 October 2011: BBRT European Region Members’ Meeting, Copenhagen, Denmark

• The main meeting on 25 October will feature case studies, plus sessions on the issues and experiences of members in their beyond budgeting implementations. It will be preceded by a BBRT Implementers Group meeting (members by invitation only) on the afternoon of 24 October

Starting September 2011: Expand Your Forecasting Capabilities With the Forecasting Improvement Road Map

Debuting in September, this program is designed as a follow-up and companion series to the book, Future Ready: How to Master Business Forecasting. Based on demand by readers and conference attendees for deeper tools, training and networks to introduce rolling forecasts, author Steve Player has created a program to help finance individuals develop and implement a forecasting road map.

The program includes:

Book & Templates

• Copy of Future Ready
• Forecasting profiles worksheets

In-Person Training

• Future Ready Workshop
• Forecasting Diagnostic Workshop
• BBRT Annual Conference
• 28 CPE credit hours

Community of Practice

• Quarterly webcasts
• Monthly open forum calls

Email heather@theplayergroup.com for information on how to sign up.

Starting September 2011: New Forecasting Training Courses Available

BBRT North America is pleased to introduce two half-day training courses for individuals interested in improving their forecasting efforts. 

These courses have been developed as a companion to the Future Ready book, authored by Steve Player and Steven Morlidge, and are being conducted on a recurring quarterly basis. The courses are run by our experts in the field of forecasting.

Future Ready Training Course (9AM - Noon)

• In this training, you will identify the seven symptoms of forecast illness, the six basics of the forecasting process, and the five advanced forecasting practices.  This course is designed to provide you with a full overview of the forecasting approach, methodology and tips.

Forecasting Diagnostic Workshop (1PM - 4PM)

• In the afternoon course, you will assess your organization’s forecasting capabilities across seven categories. At the conclusion of this interactive workshop you will have a complete set of worksheets to bring back to your organization to advance your forecasting efforts.

Dates & Logistics

The courses will be offered in Dallas, Texas with location details to be sent upon registration. For those attending both sessions, lunch will be provided. Each course provides 3 CPE hours.

Pricing

• The fee is $495 to attend one course or $795 to attend both courses.
• BBRT members receive two free training seats per course type annually.
• Forecasting Roadmap participants receive one to three free training seats per course type annually based on your benefit levels. 
• BBRT or Forecasting participants may purchase additional training seats for $295 for one course or $495 for both courses.

Email heather@theplayergroup.com for registration information.

18-20 April 2012: BBRTNA Annual Conference, Houston, TX, USA

Also see the BBRT Calendar at www.bbrt.org/events>

“The Leader’s Dilemma: How to build an empowered and adaptive organization without losing control” by BBRT Directors Jeremy Hope, Peter Bunce and Franz Röösli is about re-thinking how we manage organizations in a post-industrial world, the so-called creativity age, where innovative management models represent the only source of sustainable competitive advantage.

Leaders investigating Beyond Budgeting often ask how they can maintain “control”, or monitor what is happening in the organization when it becomes more empowered and adaptive. This thinking stems from the classic “command and control” approach to management where decision-making is somewhat centralized. Targets, plans, budgets, resources and controls flow down the hierarchy in the form of annual instructions and subsequently flow back up again in the form of results.

The “Leader’s Dilemma” explains how to move to being an organization that has few layers of management and strategy and key decisions are devolved to front-line teams have the scope and authority to respond rapidly to emerging threats and seize new opportunities as they arise. Fixed plans and budgets are usually replaced with more flexible systems, including quarterly business reviews and light rolling forecasts. The glue that holds the organization together is fast, open and transparent information systems.

To find out more about the book and to order a copy go the book web site at www.leaders-dilemma.com

We are delighted to announce that the following organizations have joined the BBRT since the last Newsletter was published:  

• AAA
• Lipman Hearne Inc
• NANA Management Services
• JR Simplot Company
• Jernbaneverket
• Statkraft AS
  

Finance Transformation Blog

Steve Player (BBRT Director North America) is now authoring a Finance Transformation blog for Business Finance Magazine. You can connect to this blog at www.bigfatfinanceblog.com

The BBRT Performance Management Tools research series

The following papers have been circulated to BBRT members since the last Newsletter:

Benchmarking

Abstract - Benchmarking enables firms to compare their performance with “best-in-class” results elsewhere. It entails analyzing in detail the performance of companies deemed to be 'best in class' at performing certain processes and activities. Moreover, these companies need not necessarily be in the same industry as the analyzing company. The focus is on the ability to perform selected activities well, such as billing, distribution and customer service. But comparing ‘apples’ with ‘apples’ can be difficult and benchmarking can lead to a ‘blame’ culture and thus the wrong management behavior. We will look at how benchmarking can be used in a positive way to stretch performance.

Sustainability

Abstract - Sustainability is not a passing fad. Nor is it a PR exercise. It offers a host of new opportunities to reduce waste (cut costs) and develop new and exciting products and services. But it means rethinking some deeply ingrained management practices such as the way firms set financial targets and budgets that collide with many principles of sustainability. We will look at these issues and try to bridge the gap between what’s good for the firm and what’s good for the environment.

Intangible Assets

Abstract - Intangible assets (or capital) represent not only patents and copyrights (which are often shown on the balance sheet) but also other assets including leading brands, loyal customers and key capabilities such as new product generation which are not. Their value is usually taken to be the difference between a company’s market capitalization and its net tangible assets. Despite the ebbs and flows of share prices over the past 25 years the value of intangibles has grown significantly, particularly in ‘people’ businesses such as software, advertising and financial services. Intangibles are increasingly seen as the key drivers of future success. We will examine how managers can identify these assets and maximize their impact.

Economic Value Added

Abstract - Economic value added (EVA) models, if well implemented, will encourage managers to act like owners and consider their decisions in the context of whether they will increase shareholders’ wealth. Accounting profits have proved time and again to be a poor indicator of future success (remember Enron, WorldCom and Tyco?). EVA goes a long way toward meeting some of the criticisms of published accounting information. But its concepts are challenging and difficult for some managers to translate into operational decisions. We will look at how EVA can be used to improve decision-making.

The BBRT research papers are delivered to BBRT members on a regular basis. BBRT members can download the full papers from the BBRT Members’ Community. Join the BBRT to obtain these and previous papers – contact Peter Bunce at peterbunce@bbrt.org, or Heather Bryce at heather@theplayergroup.com

The Management Information Exchange (MIX) has a section devoted to “hacks”. These are boundary-pushing proposals for changing the way organizations work and leaders lead – from setting strategy to allocating resources to designing work to rewarding and compensating individuals. These are not case studies, but radical ideas and proposals.

Recently Michael Gebauer, General Manager at Cardiac Research GmbH and Franz Röösli, BBRT Director DACH submitted a hack on “Wisdom of Crowds to Empower Beyond Budgeting”. We already know that the abandoning of fixed budgets makes organizations more effective. But the new kind of planning required is always dependent on recent forecasts. Wisdom of Crowds with its “tool” prediction markets can provide these data and render the Beyond Budgeting approach even more attractive. In the article Gebauer and Röösli present an alternative, a new and flexible system of controlling with a combination of Beyond Budgeting and information markets.

To read the full hack go to: http://www.managementexchange.com/hack/better-information-better-management?utm_source=MIX+Fix&utm_campaign=87ef89583e-MIX_Fix_Mar_11_2011&utm_medium=email

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, email Heather Bryce or call +1 214 239 0155