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.