Tools · The Management Shift

Change how you lead and manage

Compare how your organisation leads and manages today with how you want it to work. Bring your choices to the team and agree what to change first to cut bureaucracy so the whole organisation can adapt and act faster.

Start the exercise

01 / Why

How do you want to lead and manage?

The Bureaucratic Mass Index helps you see where bureaucracy gets in the way. The Management Shift helps you decide what to do about it, in terms of management processes and leadership principles.

Management processes and leadership principles need to change together. Giving teams more authority over spending has little effect if budgets are fixed a year in advance and every change still needs approval. Aligning decision rights with how resources are allocated changes how the management system works in practice.

Management processes

Six core management processes, each with their distinctive purposes, determine how work gets done.

Predict and prepare compared with sense and respond

Source: Beyond Budgeting, The Viable Workbook.

Leadership Principles

Leadership principles describe how an organisation can move from decisions concentrated at the top to decisions made by accountable teams. Shared purpose, customer needs and values guide those teams. Access to information and the authority to act help them make decisions close to the work.

Centralised and distributed models of decision-making

Source: Beyond Budgeting, The Viable Workbook.

02 / Exercise

Place your markers

For each process and principle, mark where you think the organisation is today and where you’d like it to be. Compare your markers with colleagues. Where do your views differ? What would need to change, and what could you try first?

Choose one current and one desired position for each process and principle. You can choose the same position for both.

Teams may want more discretion in some decisions and tighter limits in others. The descriptions at either end of each scale give you something concrete to compare.

Part 1 / Management processes

01 TargetingTo set aspirations

1 Fixed, cascaded targets negotiated annually.

“Negotiating targets is the most important thing.”
“You have to hit your numbers whatever the consequences.”

5 Directional, ambitious and relative goals.

“We are expected to set stretching goals for ourselves, and no-one is punished if we sometimes fail.”
Current position for targeting
Desired position for targeting

02 ForecastingTo estimate expectations

1 Detailed annual forecasts tied to targets.

“Forecasts are used to manage expectations. Always meet (or beat) them.”
“Forecasts need to be approved and they are frequently changed because senior people don’t believe them.”

5 Lean and unbiased forecasting.

“Forecasts have to be honest, especially when they are different to what people expect.”
“Our forecasts are the forecasts. We are trusted to tell the truth.”
Current position for forecasting
Desired position for forecasting

03 Resource allocationTo direct the flow of resources

1 Detailed cost allocations for the financial year.

“The way to win is to negotiate the biggest budget you can, and always spend it.”
“If you want to do anything you have to convince your boss.. and her boss.”

5 A cost-conscious mindset with resources planned and made available as needed.

“We will always try to find ways to fund good ideas. And you need to earn trust by spending wisely.”
“Every business team has the freedom to make investment decisions. Within clear limits of course.”
Current position for resource allocation
Desired position for resource allocation

04 Performance evaluationTo determine the level of achievement

1 Based on variance to (phased) targets.

“There aren’t any excuses for not hitting your numbers.”
“Information is made available on a ‘need to know’ basis.”

5 Holistic evaluation with peer feedback to guide intervention.

“We are always looking to see what we can learn from or contribute to others.”
Current position for performance evaluation
Desired position for performance evaluation

05 RewardsTo align the interests of employees

1 Individual performance contracts for hitting fixed budget targets.

“We are paid to focus on achieving our individual goals.”
“Everything is based on hitting your numbers.”

5 Based on shared success against competition.

“The better that the business does the better we do.”
“We are rewarded for doing the right thing for our business and our customers.”
Current position for rewards
Desired position for rewards

06 CoordinationTo align activities

1 Aligned in detail for the financial year.

“We often have to manage what we sell around accounting period ends.”

5 Organized dynamically around business rhythms and events.

“Our internal processes are geared up to give customers what they want when they want it.”
Current position for coordination
Desired position for coordination

Part 2 / Leadership principles

01 PurposeProviding direction

1 Meeting short-term financial targets.

5 Engage and inspire people around an ambitious purpose.

Current position for purpose
Desired position for purpose

02 CustomerDirecting attention

1 Internal customers’ needs take priority.

5 Teams connect directly with customer needs.

Current position for customer
Desired position for customer

03 AutonomyAllocating decision-making authority

1 Decision-making rights depend on seniority.

5 People are trusted to make decisions and act.

Current position for autonomy
Desired position for autonomy

04 OrganisationStructuring activity

1 Work is organised through a functional hierarchy.

5 People belong to teams accountable for their work.

Current position for organisation
Desired position for organisation

05 TransparencyInforming action

1 Information is shared on a need-to-know basis.

5 Teams share information openly so they can adapt their work, innovate, learn and maintain oversight.

Current position for transparency
Desired position for transparency

06 ValuesGoverning behaviour

1 Behaviour is governed by rules and negotiated agreements.

5 Shared values and sound judgement guide behaviour.

Current position for values
Desired position for values

03 / Discussion

Compare your choices

Look at each practice separately and bring an example that explains each of your ratings.

01

Where do we see today differently?

Share examples that explain why your current markers differ.

02

Where do we want to move?

Discuss which principles and processes you would keep and which you would change.

03

What could we try first?

Agree on one change to test, who will lead it and when you’ll review it.

Bring this to your next management meeting

Complete the exercise independently, then compare your markers together.

Invite a colleague