12 Beyond budgeting principles
there are 12 principles associated with the beyond budgeting model. the table below lists and describes each principle:
Leadership principles
| principle | description |
| Values | Govern through a few clear values, goals and boundaries, not detailed rules and budgets |
| Performance | Create a high performance culture based on relative success, not meeting fixed targets |
| Transparency | Promote open information for self management, don’t restrict it hierarchically |
| Organization | Organize as a network of lean, accountable teams, not around centralized functions |
| Autonomy | Give teams the freedom and capability to act; don’t micro-manage them |
| Accountability | Focus everyone on improving customer outcomes, not on hierarchical relationships |
Process principles
| principle | description |
| Goals | Set relative goals for continuous improvement, don’t negotiate fixed performance contracts |
| Rewards | Reward team-based success based on relative performance, not on meeting fixed targets |
| Resources | Make resources available as needed, not through annual budget allocations |
| Planning | Make planning a continuous and inclusive process, not a top-down annual event |
| Coordination | Coordinate interactions dynamically, not through annual planning cycles |
| Control | Base controls on relative indicators and trends, not on variances against plan |
by TheFazz on 7 Jan 10 at 1832 hours
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