implementing_beyond_budgeting-_unlocking_the_performance_potential_by_bjarte_bogsnes_-_bjarne_bogsnes
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implementing_beyond_budgeting-_unlocking_the_performance_potential_by_bjarte_bogsnes_-_bjarne_bogsnes [2016/10/18 05:20] – [On Traditional Performance Evaluation] hpsamios | implementing_beyond_budgeting-_unlocking_the_performance_potential_by_bjarte_bogsnes_-_bjarne_bogsnes [2020/06/04 09:23] (current) – Removed LINKBACK hans | ||
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- | ====== Reference ====== | ||
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- | [[https:// | ||
====== Review and Notes ====== | ====== Review and Notes ====== | ||
- | In general I found this a very useful book as my experience has been that many agile implementations stumble when they start working more corporate or financial issues. Part of the reason is that it is easy for many to say "The agile stuff is for the IT or product development folks - it doesn' | + | In general I found this a very useful book as my experience has been that many agile implementations stumble when they start working more corporate or financial issues. Part of the reason is that it is easy for many to say "The agile stuff is for the IT or product development folks - it doesn' |
- | The book talks about the problems with traditional financial thinking and works to address some of those issues. Starting with an assumption that " | + | The book talks about the problems with traditional financial thinking and works to address some of those issues. Starting with an assumption that " |
====== On Traditional Budgeting Approach ====== | ====== On Traditional Budgeting Approach ====== | ||
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On selling "I often recommend to start with the quality problem, with the separation of the three budget purposes, especially if the organization is dominated by engineers, finance people, and a lot of rational thinking and problem solving. The simple fact that an ambitious target cannot be the same number as a 50/50 expected outcome forecast has a mathematical ring to it. That a cost forecast that doubles as a request for resources seldom will be a good forecast is quite obvious and most people get it right away. Both are simple to explain and can be illustrated easily with concrete examples from actual budget and planning practices in the company. Remind people that separating and improving only can make things better, and that we are not stopping what the budget tried to do for us. Add on some calendar examples from the rhythm problem. The light will most likely go on, and people will see something they have always sensed but not fully understood." | On selling "I often recommend to start with the quality problem, with the separation of the three budget purposes, especially if the organization is dominated by engineers, finance people, and a lot of rational thinking and problem solving. The simple fact that an ambitious target cannot be the same number as a 50/50 expected outcome forecast has a mathematical ring to it. That a cost forecast that doubles as a request for resources seldom will be a good forecast is quite obvious and most people get it right away. Both are simple to explain and can be illustrated easily with concrete examples from actual budget and planning practices in the company. Remind people that separating and improving only can make things better, and that we are not stopping what the budget tried to do for us. Add on some calendar examples from the rhythm problem. The light will most likely go on, and people will see something they have always sensed but not fully understood." | ||
- | “Formula for Change” created by David Gleicher and later refined by Kathie Dannemiller. It says little about sequence but highlights critical elements for change to take place. It reads as follows: | + | “Formula for Change” created by David Gleicher and later refined by Kathie Dannemiller. It says little about sequence but highlights critical elements for change to take place. It reads as follows: |
+ | organizational_change = dissatisfaction x vision x first_steps | ||
+ | For organizational change to take place, there must be dissatisfaction with the current situation; there must be a vision of something better; and there must be some first tangible and credible steps toward it. The product of the three must be bigger than the resistance to change. If any of the three is low or zero, the resistance will normally be bigger and kill the change. | ||
+ | ====== Want to Know More? ====== | ||
- | {{tag> | + | * [[https:// |
+ | {{tag> | ||
- | ~~LINKBACK~~ | ||
- | ~~DISCUSSION~~ |
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