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7 Tests of a new model in the context of Beyond Budgeting
7 Tests of a New Model in Beyond Budgeting
In Beyond Budgeting, the concept of the "7 Tests of a New Model" provides a framework for evaluating and implementing new models within organizations. These tests serve as guidelines to ensure that new models align with the principles of agility and adaptability that are central to the Beyond Budgeting approach.
The 7 Tests of a New Model are as follows:
Test for Beneficial Purpose: Does the new model serve a beneficial purpose for the organization and its stakeholders?
Test for Relevance: Is the new model relevant to the current needs and challenges facing the organization?
Test for Simplicity: Is the new model simple and easy to understand and implement?
Test for Nonlinearity: Does the new model embrace the nonlinear nature of complex systems and interactions?
Test for Predictability: Can the new model provide some level of predictability while still allowing for flexibility and adaptability?
Test for Learning: Does the new model encourage learning, experimentation, and feedback loops?
Test for Constraints: Are there appropriate constraints in place to guide the implementation and evolution of the new model?
By applying these tests, organizations can ensure that their new models are effective, responsive, and aligned with the principles of Agile and Beyond Budgeting.
Resources
Beyond Budgeting Institute - Official website of the Beyond Budgeting Round Table (BBRT) where you can find in-depth resources and information on Beyond Budgeting principles.
"Implementing Beyond Budgeting: Unlocking the Performance Potential" by Bjarte Bogsnes - A book that dives into the practical aspects of implementing Beyond Budgeting, including the 7 Tests of a New Model.
Harvard Business Review - "Beyond Budgeting" Collection - A collection of articles from Harvard Business Review that explore the concepts and practices of Beyond Budgeting.
Feel free to explore these resources for a more comprehensive understanding of the 7 Tests of a New Model and Beyond Budgeting principles.
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by Stephan Hagemann