12 Beyond Budgeting Principles

  1. Values: Bind people to a common cause; not a central plan
  2. Governance: Govern through shared values and sound judgement; not detailed rules and regulations
  3. Transparency: Make information open and transparent; don’t restrict and control it Accountable teams
  4. Teams: Organize around a seamless network of accountable teams; not centralized functions
  5. Trust: Trust teams to regulate their performance; don’t micro-manage them
  6. Accountability: Base accountability on holistic criteria and peer reviews; not on hierarchical relationships Goals and rewards
  7. Goals: Set ambitious medium-term goals, not short-term fixed targets
  8. Rewards: Base rewards on relative performance; not on meeting fixed targets Planning and controls
  9. Planning: Make planning a continuous and inclusive process; not a top-down annual event
  10. Coordination:Coordinate interactions dynamically; not through annual budgets
  11. Resources: Make resources available just-in-time; not just-in-case
  12. Controls: Base controls on fast, frequent feedback; not budget variances