We are living in a time of transition with instability and unpredictability as a normal state. New and young generations are entering work life and new technologies creates new opportunities for financial and operational management. Yet, we continue to plan annually and to follow up how plans are kept on a yearly basis. The time and effort spent on working with the traditional budget rarely leads to sustainability, high profitability, happy employees or even creates value for shareholders. Is it possible for all organizations, or even units within an organization, to know and in advance and predict what will happen between January 1 and December 31 of each year? Is it possible that all of them have a deadline for their business on the last day of a year as the traditional budget stipulates?
Beyond Budgeting is a concept - a comprehensive and fundamental idea – with a set of principles based on well-known and accepted methods and models on how to manage, organize and lead organizations in times of uncertainty. The acronym VUCA - volatility, uncertainty, complexity and ambiguity - can summarize the complexity of today’s reality and the change in the environment, we are forced to accept. Globalization, market shifts, (de-)regulations and increased competition create high demands on the organization's ability to adapt. The demographic changes facing us, with lack of talents in the global market, as well as the constant technological developments, where everything becomes digitized, is challenging the requirements for any organization that try to control it with the help of a traditional budget. This two-day course will provide participants with:
Topics day 1
- an understanding of the need for new management models in a world and business environment described above
- a thorough introduction to the Beyond Budgeting principles and why the traditional budget as a management model is obsolete
- methods and tools for replacing the traditional budget, with focus on how to work with rolling forecasts, target setting, resource allocation and how to use indicators to create motivation and early warning signals
- methods and tools for organizing, lead and motivate a knowledge-based organization
- methods and tools for better leadership, communication and how to motivate your organization
- change management methods and implementation tools
The first day is focusing on:
Topics day 2
- Traditional budgeting and the critique against it and why command and control management is obsolete
- Beyond Budgeting – an overview
- Targets and target setting techniques
- Forecasting and forward looking analysis
- Resource allocation and decision making
The second day is focusing on:
Exercises and discussions
- Case discussions
- Organization models
- Leadership principles
- Motivation and incentives
- Implementation guide
The two-day course is based on practical experiences and includes several case stories from large international companies with time for discussions. Approximately 50 percent lecturing and 50 percent group discussions.
This course is suited for mangers and leaders who struggle with budgets in a professional organization and a dynamic world, and who wants to be agile and run the business with higher profitability, flexibility and change without losing control. General knowledge and experience of management accounting is necessary.
Upon completion of the program, you will receive an official certificate of participation from the Beyond Budgeting Institute.
Knut Fahlén is author of the book “Beyond Budgeting in practice – guide to dynamic management and accounting control” (in Swedish, Liber, 2016). He has a PhD in Business Administration and has long experience from Finance and IT. He is now working with evaluation of TBM (Technology Business Management) for the The Swedish National Financial Management Authority.