May 30, 2023

Breaking Bad: Getting to Beyond Budgeting

51 minutes

Bjarte Bogsnes has worked with companies, from IKEA, H&M,Pernod Ricard, Volvo and Equinor (Scandinavia’s largest company). His approach, “Beyond Budgeting” involves wholesale rethinking about budget approaches. In today’s episode, Bogsnes rails against the “misery” and “borderline unethical behavior” in traditional budgeting within companies, as he talks about the seachange happening in businesses. He talks to Paul Barnhurst as he publishes his new book, This Is Beyond Budgeting: A Guide to More Adaptive and Human Organizations (2023).

The episode covers

Definition of beyond budgeting as an antidote to “serious problems with traditional management”

How traditional budgeting gets “trust” and “predictability” wrong

Your answer to “Why are you budgeting?” shows the problems inherent in existing process

How budget process are “borderline unethical”

Equinor (Scandinavia’s case study) change

Making organizations more adaptive and human in the process of transformation

Don’t start with rolling forecasting

How a Vinyl collection of 3,5000 is a unique musical passion

How Beyond Budget “will happen” in the next decade

Links

Bognes Advisory bogsnesadvisory.com

FT (case study of Ikea): CEOs forced to ditch decades of forecasting habits

Bjarte Bogsnes: This Is Beyond Budgeting: A Guide to More Adaptive and Human Organizations

Follow Bjarte Bogsnes on LinkedIn

YouTube video of the episode

Follow Paul Barnhurst on LinkedIn

Follow Datarails on LinkedIn

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