- Hardcover: 336 pages
- Publisher: Harvard Business Review Press (April 11, 2003)
- Language: English
- ISBN-10: 1578518660
- ISBN-13: 978-1578518661
- Product Dimensions: 0.8 x 6.8 x 9.2 inches
- Shipping Weight: 1.2 pounds (View shipping rates and policies)
- Average Customer Review: 11 customer reviews
- Amazon Best Sellers Rank: #270,966 in Books (See Top 100 in Books)
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Beyond Budgeting: How Managers Can Break Free from the Annual Performance Trap
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"Beyond Budgeting is a must-read for anyone interested in seeing the future of performance management." -- Planning Perpectives, Issue #29, September 23, 2003
From the Inside Flap
"Beyond Budgeting distills the new management model for the Information Age. This is a book for leaders with the courage and insight to sweep away an enervating management dogma and release the latent wealth in their organizations."
Gregor Pillen, EMEA Head of Financial Management Solutions, IBM Business Consulting Services
"Hope and Fraser blast away the old budget approach in Beyond Budgeting. Their thorough analysis and synthesis of many successful business cases writes the blueprint for competitive success in the current turbulent hypercompetitive economic environment."
Michel J. Lebas, Professor of Management Accounting, H.E.C. School of Management, France
"Hope and Fraser brilliantly expose what lies at the heart of most failed attempts to foster corporate agility and innovationthe fixed performance contract and the low trust mindset in which it is set. Beyond Budgeting is a true paradigm shift!"
Steve Morlidge, Unilever Bestfoods UK
"Beyond Budgeting has inspired UBS not only to shift its focus away from traditional, detailed budgets but also to take the next steps and implement plans with adequate levels of detail; and further redirect its focus toward trend analysis, scenario planning, and rolling forecasts."
Peter Thurneysen, UBS AG, Head Group Controlling & Accounting
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Top customer reviews
It's about a new way of managing your business, based on descentralization, empowerment and self-organizaton. They give some good examples of places where it worked, a d an overview of what has to be done, what tools and techniques tonuse.
I believe in this approach, but I think more details are needed to maje things happen.
The book consists of four parts. The first part describes budgeting and the problems that are inherent to the budgeting process. It introduces an alternative based on what several companies have done, with the prime example being the Swedish Handelbanken. It splits the beyond budgeting concept it two adaptive process for managing performance and radical decentralization. These are covered in the next two parts.
The second and third part describe the two legs of beyond budgeting. The structure of the chapters is similar. The first chapter describes three cases of organizations that implemented these and similar concepts. The second chapter covers the principles while the last chapter in each part covers hints for implementation.
The adaptive process for managing performance suggests to set relative targets, decouple rewards from target setting, provide resources on request, and provide up to date and transparent information to everyone within the organization. Radical decentralization is build on top of this and recommends to empower people close to customers to make the decisions, work within teams and create an open and transparent information system that supports these people to make local decisions.
The last part of the book contains two chapters. The first one describes tools (and could have been left out from my perspective, didn't added much to the rest of the book). The second chapter described an overall vision for management in the 21th century and how Beyond Budgeting fits in that.
I liked the book, it challenges a whole lot of management assumptions and demonstrates an alternative not based on speculation but based on real cases. My only objection to the book was exactly that. Beyond budgeting is created based on what a couple of real companies do... but these companies all did slightly different things at different degrees. This variance makes the book sometimes hard to read as it makes it hard to fix the concept "beyond budgeting." Perhaps this was the authors intention... though from the readers perspective it would probably be easier to first describe the concepts and then move to case studies and show how different companies implemented the beyond budgeting concepts. Because of this, I considered a 3 star review... but as this book really provides a new concept, I feel that wouldn't be fair. So, four stars and a definitive recommendation for people who are tired of budgeting hell (aren't we all?) and like to know if there is an alternative. There is... it is called: Beyond budgeting!
When this was written it was seen as the antidote to the endless budgeting cycle based on the 'prediction' fallacy and the ensuing corporate gaming they create.
All of us have said at one time or another this process (budgeting negotiation etc.) is a joke, but we all continue to play our part in maintaining the joke, playing the game, fighting for survival in a world created by the madness of the corporate budgeting processes.
Hope and Fraser have clearly demonstrated that the current process is not only wasteful in terms of human effort but downright detrimental the the enterprise, employees and customers. They go further and show us all a way out of the trap.
There is an alternative, but it needs study and it needs more companies other than the ones illustrated in the book to lead the way. Only then can we change the current paradigm where 'Accepted ideas are no longer competent and competent ideas are not yet acceptable'
Jeremy Hope is without any doubt the leading thinker in the world for all corporate accountants and his writings should be on the shelves of all progressive finance teams around the world. Please read also read Reinventing the CFO: How Financial Managers Can Transform Their Roles and Add Greater Value