Deep Rooted Issues with Traditional Budgeting - Bjarte Bogsnes in conversation with Sohrab Salimi

In this snippet from our Agile Insights Conversation, Bjarte Bogsnes and host Sohrab Salimi delve into the fundamental problems with traditional budgeting practices.

Bjarte explains that traditional management, including budgeting, is built on two outdated assumptions: the future is predictable and people can't be trusted. However, in today's rapidly changing business landscape, these assumptions no longer hold true.

Bjarte highlights how traditional budgeting can lead to negative behaviors within organizations, such as gaming the system to meet targets, creating unnecessary buffers, and hoarding resources. These practices can ultimately harm a company's overall health and performance. Moreover, traditional budgeting often promotes a short-term focus and a culture of self-preservation, which is at odds with the need for innovation, agility, and teamwork in the modern economy.

Don't miss the full conversation with Bjarte Bogsnes, a thought leader in the field of management accounting and author of "Implementing Beyond Budgeting."    • Beyond Budgeting (Bjarte Bogsnes in c...  

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