BBRT - Beyond Budgeting Roundtable

While there is no recipe or cookbook that can provide a generic roadmap for implementation, we believe that following seven steps will guide you toward a successful transformation:

Seven steps

1. Think like a revolutionary. As strategy guru, Gary Hamel, has explained in his book The Future of Management leaders need to apply their creative thinking not only to products, processes and business models, but also to management itself. Management and the culture it supports is the only sustainable competitive advantage remaining (in a digital world all others can be quickly copied).
   
2. Build an urgent case for change and convince the board. You need to convince senior executives that this is the right path to take and explain what it means.
   
3. Establish a ‘guiding coalition’. You need to establish a ‘guiding coalition’ of 10-12 key people who are capable of creating and communicating the vision for change and then guiding the implementation process. They will also need the scope and authority to make important decisions.
   
4. Establish a number of ‘design teams’ responsible for designing and implementing the model. These teams will apply the principles of Beyond Budgeting to the design of an appropriate management model. One approach is to focus teams responsible for designing the new model on the three types of accountable team: executive team, support services team and value centre team. By thinking through the new roles and responsibilities of each team and then designing the right governance and accountability models as well as the right goal setting, planning, resource management and reporting systems to fit their needs, the bulk of the new model will become clear.
   
5. Train and educate. Each new team needs to be trained and educated to operate with the new model.
   
6. Look for quick wins. It is important that leaders identify quick wins to build credibility and maintain momentum.
   
7. Consolidate the gains and maintain the momentum. Leaders should always look to create more value centres and reduce the size of support services and operating process teams. They can also move experienced people around so they become ‘ambassadors’ for the new model.