Breaking Bad: Getting to Beyond Budgeting

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   FP&A Today is brought to you by Datarails.   Datarails is the financial planning and analysis platform that automates data consolidation, reporting and planning, while enabling finance teams to continue using their own Excel spreadsheets and financial models.