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

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Chapter Eight

Insights into Changing Centralized Mind-Sets

Changing something implies not just learning something new but unlearning something that is already there and possibly in the way. What most learning theories and models overlook are the dynamics of unlearning, of overcoming resistance to change. They assume that if you can just get a clear enough vision of a positive future, this is motivation enough to get new learning started.1

—EDGAR SCHEIN

Changing the centralized mind-set is a tough challenge. But this is exactly what leaders in our featured cases have done. So why doesn’t every firm follow suit? The answer is that it is extremely difficult. It crucially depends on rooting out the budgeting and dependency culture. The problem, ...

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