#224: Why Now Is The Tipping Point For Beyond Budgeting

with Rikard Olsson


Our Guest Mentor:

Rikard Olsson is Managing Director of Beyond Budgeting Limited. Rikard has spent many years in the pharmaceutical industry and, for the last six years, he has been a management consultant with BBRT’s partner in Sweden: EkanRikard has a solid experience of developing control models and management processes, including from his previous role as chief controller at AstraZeneca. He is a sought-after speaker at conferences and seminars where he challenges how we lead and manage our companies and organizations, often under the heading “budget-free governance”. 

Rikard graduated with a BS in Economics from the University of Gothenburg and lives in Gothenburg, Sweden. 

Key Quotes From the Episode: 

[Generalist vs Specialist] you need to have a generalist mindset for you to understand the business but you need to find your niche for you to move forward.[15:13] 

[In changing the culture of organization] have a revolutionary mindset but take evolutionary approach.[20:06] 

 Forecasting doesn’t need to mirror Accounting”. [24:24] 

You need to start with the basic and get the basics right”. [35:31] 

(Other resources and how to connect with Rikard below). 

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Key Points From the Episode: 

Reason why he took Management Accounting over Auditing;  

  • Forward looking 
  • Not limited to financial skills but covering a wide spectrum of the business 
  • Can influence  the future Pitfall of traditional budgeting practices 

Development in Finance and Accounting roles the last 15 years 

3 things you must know before you engage in rolling forecast 

Now is the tipping point for Beyond Budgeting practices 

Time Stamped Show Notes 

[02:57] – Rikard shares his career journey started when being the 3rd in his family who had taken the same course at the same school at the University of Gothenburg. First, tried to be an Auditor and later shifted to Management Accounting. Worked with Astrazeneca Pharmaceutical then moved to consulting job at Ekan Management at the same time being the Managing Director for Beyond Budgeting Ltd.  

[05:21] – Reason why he took Management Accounting;  

  • Forward looking 
  • Not limited to financial skills but covering a wide spectrum of the business  
  • Can influence  the future  

[07:32] – Development iFinance and Accounting roles the last 15 years was categorized into the following;  

  • Specialist finance 
  • Transactional Finance 
  • Analyst or Decision Support 

[13:17] – Opportunities for generalist and specialist in Finance and Accounting profession will depend on the size of the organization. 

[15:48– Rikard shares his thoughts on Beyond Budgeting the need to optimize activities like; 

  • Target setting 
  • Forecasting 
  • Resource allocation 

[18:24 Finance and Accounting professionals may start with forecasting in implementing Beyond Budgeting principles.  

[20:48] – Having confidence in doing revolutionary approach in changing the culture of the organization. 

[23:28] – 3 things you must know before you engage in rolling forecast; 

  • Why do you do forecast? 
  • Less details more drivers 
  • Take other time horizons 

[30:03] – Rikard shares what does excite him most in his current work 

[31:50] – Now is the tipping point for Beyond Budgeting movement  

[34:52] – The best advice Rikard ever received   

  • You need to start with the basic and get the basics right 
  • Never stop being curious  

[37:56] – Resources Rikard recommend to our audience to check.  

[39:27] – Best way to connect to Rikard  

[39:59] – Rikard parting thoughts to our audience to take the first steps to begin your journey. 

Resources Mentioned: 

Books:   

Hardcover   

Beyond Budgeting: How Managers Can Break Free from the Annual Performance Trap by by Jeremy Hope and Robin Fraser 

https://www.amazon.com/Beyond-Budgeting-Managers-Annual-Performance/dp/1578518660 

Implementing Beyond Budgeting: Unlocking the Performance Potential by Bjarte Bogsnes   

https://www.amazon.com/Implementing-Beyond-Budgeting-Unlocking-Performance/dp/111915247X/ref=pd_sbs_14_t_0/143-8420792-2081127?_encoding=UTF8&pd_rd_i=111915247X&pd_rd_r=1e0bcd20-622a-42d7-8d35-69a3154e2839&pd_rd_w=IPrsH&pd_rd_wg=Z80hy&pf_rd_p=5cfcfe89-300f-47d2-b1ad-a4e27203a02a&pf_rd_r=AAG98B8WAJKSTWD4J9NK&psc=1&refRID=AAG98B8WAJKSTWD4J9NK 

Paperback 

Future Ready: How to Master Business Forecasting by Steve Morlidge 

https://www.amazon.com/Future-Ready-Master-Business-Forecasting-dp-B007TD3AVW/dp/B007TD3AVW/ref=mt_paperback?_encoding=UTF8&me=&qid=1579009670 

Website 

Beyond Budgeting Organization 

https://bbrt.org/ 

https://www.linkedin.com/company/beyond-budgeting-institute/?originalSubdomain=ph 

Connect with today’s guest: 

LinkedIn Profile: ﷟HYPERLINK “https://www.linkedin.com/in/karlhkern/” https://www.linkedin.com/in/rikard-olsson-762bb7/ 

Company Website: https://bbrt.org/ 

Email: olsson@bbrt.org 


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