The Leader's Dilemma

Jeremy Hope is co-founder of the Beyond Budgeting Round Table, a not-for-profit collaborative dedicated to helping organizations improve their management models. He is a chartered accountant and a co-author of Transforming the Bottom Line, Competing in the Third Wave and Beyond Budgeting. He is also author of Reinventing the CFO. He lives in West Yorkshire, England and can be contacted at jeremyhope@bbrt.org. Peter Bunce is a co-founder of the Beyond Budgeting Round Table (BBRT), a not-for-profit collaborative dedicated to helping organizations improve their management models. He is a Chartered Engineer and has held various posts in manufacturing engineering and collaborative research. He lives in Hampshire, England and can be contacted at peterbunce@bbrt.org. Franz Rsli is a professor and management trainer at the University of Applied Sciences North Western Switzerland (FHNW) and Director of the Beyond Budgeting Round Table (BBRT), an international shared learning network for management development. He has experienced many years in management positions in different industries. He lives in Switzerland and can be contacted at franz.roeoesli@bbrt.org.

Foreword v Preface vii Some definitions ix Introduction The organization as an adaptive system 1 1 Principle #1 Values 33 Bind people to a common cause, not a central plan 2 Principle #2 Governance 57 Govern through shared values and sound judgment, not detailed rules and regulations 3 Principle #3 Transparency 89 Make information open and transparent; dont restrict and control it 4 Principle #4 Teams 105 Organize around a seamless network of accountable teams, not centralized functions 5 Principle #5 Trust 121 Trust teams to regulate and improve their performance; dont micro-manage them 6 Principle #6 Accountability 139 Base accountability on holistic criteria and peer reviews, not on hierarchical relationships 7 Principle #7 Goals 157 Set ambitious medium-term goals, not short-term fixed targets 8 Principle #8 Rewards 179 Base rewards on relative performance, not fixed targets 9 Principle #9 Planning 203 Make planning a continuous and inclusive process, not a top-down annual event 10 Principle #10 Coordination 225 Coordinate interactions dynamically, not through annual budgets 11 Principle #11 Resources 239 Make resources available just-in-time, not just-in-case 12 Principle #12 Controls 257 Base controls on fast, frequent feedback, not on budget variances 13 Implementation insights 283 14 Make management change your legacy 305 Notes 309 Index 325