BBRT - Beyond Budgeting Roundtable Building the management model links from the drivers and case for change, to the vision for change and on to the actions for change that need to be implemented and managed. In this area the last two columns in the table show how different mental models can lead to very different actions.
Actions for change |
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Drivers of change |
Vision for change |
'Command & control; model |
'Beyond Budgeting' model |
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Build an ethical and transparent organization | Appoint a chief ethics officer, provide more training on ethics, increase surveillance and tighten compliance rules | Governing principles |
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Build an open and stimulating workplace that encourages creativity | Create more cross-functional teams, send selected staff on “creativity” courses and build “collaboration” into performance reviews | Self-regulation Trust people with the freedom and capability to create and decide |
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Respond rapidly to customer needs and unpredicted events | Set up fast-response service centers and reset targets, budgets and incentives to adjust to an unpredicted change | Adaptive processes Build processes that enable people to learn and adapt |
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Reduce waste in all processes and projects and encourage more experimentation | Reduce cost and capital budgets, outsource non core processes and give key managers additional goals to produce “five new ideas” this year | Dynamic resources Enable resources to follow the best opportunities and eliminate waste |
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Beat peers consistently and sustain profitable growth | Set tougher targets and more aggressive incentives to drive performance improvement | Relative improvement Challenge teams to set aspirational goals but recognize and reward relative improvement |