Resolutions 2010: implementing beyond budgetting

In the early spring of this year I read Bjarte Bogsnes “Implementing Beyond Budgetting”.

Now in the midst of the budget 2010 preparation phase I is nice to connect to some of his major findings.

It is all about the transformation of the traditional finance function from mere controlling and bookkeeping to a function that supports value creating for a department or a manager. And in that context assists in assessing opportunities and risks.

I think that the operational financial budget was a great innovation in the times of stable mass-production.

In a highly dynamic environment with other constraints and bottleneck than in the post the value of the instrument has lost it relevance to a certain extent. (I could have posted this item under one my favorite “blown to bits”, but that would be misleading).

You also recall the time that the foundation for your budget 2009 was established. Indeed, that was probably before the outburst of the financial crisis midst September 2008.  I assume that your budget was adapted to the crisis,  adapted again for the bare minimum in February, adapted again in the way back up and so on. Or not.

Bjarte points out the counterreaction. Because of the high preparation costs, in time and money, of the annual budget and its inflexibility in light of rapidly changing circumstances and opportunities, the Beyond Budgetting movevement was launched!

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