Now that this year’s Beyond Budgeting Round Table Conference has concluded, I’m looking forward to next year’s event. Yet, I also find myself looking back to discussions, insights, and (yes) equations that came out of our previous annual conferences.

Back in 2006 in Las Vegas, we discussed the Change Model (also known as the “Change Formula,” “Change Equation,” and “Gleicher’s Formula”), which was developed by organizational development specialists and an economist. At our event, though, we talked about how my coauthor Steve Morlidge had recently introduced the concept to the Beyond Budgeting discussion.

Here’s the equation: D x V x F > R. The equation identifies the factors – dissatisfaction (D), a vision for a better approach (V) and a process or “known first steps” (F) – that need to be present if a project or initiative is to overcome the organizational resistance to change (R) that inevitably exists.

Four years ago, nearly every single insight generated at the conference dealt with dissatisfaction, the Beyond Budgeting vision, resistance, and first steps. Today, I’m happy – and proud – to report that conference discussions are much more focused on first steps, as well as second, third, fourth, and fifth steps.

One clear benefit of the recession of 2009 has been a dramatic acceleration in organizations moving Beyond Budgeting. In May 2009, Business Finance editor Jack Sweeney declared budgets dead. While many may mourn, it is clear that the D and V in the equation are understood. It is time to move to a better way to plan and control. ###